# Milk Fat Shortage: Why Butter Prices Rose 54%

> Ex-dairy butter prices in India rose over 54% between October 2023 and October 2026, against 18% for skimmed milk powder. Buffalo milk, richer in fat, now provides about 45% of national output, down from 60% three decades ago. Demand for ghee, paneer and butter has grown faster than fat supply.

- Date: 2026-11-12 · published 2026-11-12T12:15:28.579Z
- Category: market · region India · magnitude low
- Page: https://feedsoft.ai/events/95459-milk-fat-shortage-why-butter-prices-rose-54
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

A structural shortage of milk fat keeps butter and ghee prices elevated relative to skim products, supporting dairy fat values and widening the price gap between fat and solids.

## Read by commodity

- MILK: bullish ▲

## Sources

- econiti.org: https://www.econiti.org/daily-news/2026-11-12/2026-11-12-milk-fat-shortage-buffalo-share-butter-prices/

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