Dairy is among the largest agricultural commodities in India, employing 80 million people and contributing to 5% of its economy, per federal data. It’s the world’s largest milk producer, making up more than a fifth of global production — but exports are only a fraction of this.
As this will only drive up the price of milk in India, food price inflation—and thus food insecurity—just got a nice shot in the arm on the subcontinent.
One more supply shock that hiking interest rates cannot resolve.
The Next Supply Shock: India's Dairy Industry Hit By Disease
There is a new disease stalking India’s dairy farms: “lumpy skin disease”, a viral mosquito-borne pathogen, has so far killed 100,000 cows and sickened 2 million, threatening the livelihoods of thousands of small dairy farmers.
As this will only drive up the price of milk in India, food price inflation—and thus food insecurity—just got a nice shot in the arm on the subcontinent.
One more supply shock that hiking interest rates cannot resolve.