# Why is ghee costing more? Indian dairies have a big fat problem

> India’s milk-production growth is projected to slow to 2.5% in 2026 and 2% in 2027, with tightening feed and fodder supplies and weaker animal productivity linked to El Niño-induced drought. Dairy butter prices rose 54.3% from October 2023 to October 2026, while skimmed milk powder prices increased 18%, reflecting a tighter supply of milk fat than of non-fat solids.

- Date: 2026-11-07 · published 2026-11-08T00:08:18.066Z
- Category: weather · region India · magnitude medium
- Page: https://feedsoft.ai/events/86615-why-is-ghee-costing-more-indian-dairies-have-a-big-fat-problem
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Drought-related feed constraints and slower production growth can limit milk and butterfat availability, supporting dairy-fat prices and raising the cost of ghee. The reported divergence between butter and skimmed milk powder points to particular firmness in fat-linked dairy markets.

## Read by commodity

- MILK: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2018-06-20 | [Where are milk prices headed in rising dairy markets? - Farmers Weekly](https://feedsoft.ai/events/64546-where-are-milk-prices-headed-in-rising-dairy-markets-farmers-weekly.md) | -0.7% | -7.0% |
| MILK | 2024-06-27 | [With commodity prices boosted, what are the prospects for UK dairy?](https://feedsoft.ai/events/29758-with-commodity-prices-boosted-what-are-the-prospects-for-uk-dairy.md) | -1.7% | -0.2% |
| MILK | 2021-04-28 | [Dairy farmers struggle with high costs in tricky market - Farmers Weekly](https://feedsoft.ai/events/47614-dairy-farmers-struggle-with-high-costs-in-tricky-market-farmers-weekly.md) | -0.0% | +7.5% |
| MILK | 2026-07-22 | [Hot Weather Gives Cheese Markets a Boost as Milk Supplies Tighten - Dairy Herd](https://feedsoft.ai/events/18528-hot-weather-gives-cheese-markets-a-boost-as-milk-supplies-tighten-dairy-herd.md) | +0.2% | +5.0% |
| MILK | 2019-02-20 | [International prices for milk and dairy products](https://feedsoft.ai/events/9987-international-prices-for-milk-and-dairy-products.md) | -0.3% | +6.8% |

## Sources

- indianexpress.com: https://indianexpress.com/article/india/ghee-prices-costing-more-milk-production-10955022/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.