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Startup to Scaleup | How Akshayakalpa Organic Is Transforming Milk Consumption In India




 

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<div class="p-rich_text_section">When asked about the future of organic farming, Shashi Kumar, co-founder, Akshayakalpa Organic emphasized that consumer support is essential&nbsp;</div>
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Imagine a dairy brand where cows aren&rsquo;t confined, milk is produced with uncompromising purity, and and where the focus isn&rsquo;t just on profits but on building a better life for farmers and consumers. To talk more on the organic way of producing milk and others, Avni Raja from BusinessHook interviewed Shashi Kumar, co-founder, Akshayakalpa Organic to speak more on this.&nbsp; What is akshayakalpa organic? Akshayakalpa was founded in 2010, headquartered in Tiptur, Karnataka. Their aim? To change the way dairy farming is done by focusing on sustainability and organic practices Humane Approach to Dairy Farming Speaking to Shashi Kumar about the human approach, Kumar said at Akshayakalpa, the cows come first. Their well-being is a top priority. ''Cows have the freedom to move around, live stress-free, and always have access to fresh water and quality fodder''. He further added that from calf to cow, the care they receive is part of what makes Akshayakalpa&rsquo;s dairy unique.&nbsp; Challenges Faced Kumar described Akshayakalpa&rsquo;s journey as anything but smooth. "We set out to solve fundamental farming issues and create a stable income model for farmers, but building trust was a major challenge," he shared. He added that the company came close to shutting down several times, with securing external funding proving to be another significant hurdle.
Expansion Plans Kumar shared that, for now, Akshayakalpa has no plans to expand beyond Karnataka. &ldquo;Organic farming is a gradual process, and scaling requires careful oversight to maintain quality,&rdquo; he explained.
Future of Food &amp; Organic Farming When asked about the future of organic farming, Kumar emphasized that consumer support is essential. &ldquo;It&rsquo;s not just about buying a product; it&rsquo;s about supporting a system that benefits health, farmers, and the environment,&rdquo; he noted.

The rate of full-cream milk has increased 9.86 per cent in June 2023 to Rs 64.6 per litre from Rs 58.8 per litre in the year-ago period

Milk prices: toned, full-cream milk rose 10% in June 2023

The rate of full-cream milk has increased 9.86 per cent in June 2023 to Rs 64.6 per litre from Rs 58.8 per litre in the year-ago period

Prices of toned and full-cream milk rose by 9 per cent and 10 per cent, respectively, in June this year compared to the same month last year, according to the government data.
In a written reply to Rajya Sabha, Fisheries, Animal Husbandry and Dairying Minister Parshottam Rupala said, "As per information received from National Dairy Development Board (NDDB), the price of milk in the country has not increased drastically during the last three years".
In June 2023, the price of toned milk was Rs 51.6 per litre, up 8.86 per cent from Rs 47.4 per litre in June 2022.
The rate of full-cream milk has increased 9.86 per cent in June 2023 to Rs 64.6 per litre from Rs 58.8 per litre in the year-ago period.
"Department of Animal Husbandry &amp; Dairying (DAHD), Government of India does not regulate procurement and sale prices of milk in the country. Prices are decided by the cooperative and private dairies based on their cost of production and market forces," Rupala said

Milk costs have increased by 14 to 15%, which is a sharper increase than inflation, and they are expected to remain high till Diwali

Milk prices won't decrease till Diwali:  president of the Indian dairy association

Milk costs have increased by 14 to 15%, which is a sharper increase than inflation, and they are expected to remain high till Diwali

Milk prices would remain high till Diwali but may later begin to reduce once the flush season begins and feed prices start to drop, according to Rupinder Singh Sodhi, president of the Indian Dairy Association
In flush season animals naturally produce more milk and their fodder gets cheaper due to a drop in feed price.
In India, the price of milk has increased significantly by 14 to 15%, which is higher than the rate of inflation. After cereals, milk inflation has been the second-largest contributor to higher retail inflation in January and February.
According to the March CPI (consumer price index) data, milk prices increased 9.3% year over year. And while it is hoped that cereal prices will decline, milk prices are anticipated to increase.
The Indian Dairy Association's current president, RS Sodhi, who was also the former managing director of the Gujarat Cooperative Milk Marketing Federation, whose main brand is Amul, stated that he does not expect milk prices to drop until Diwali, which is normally observed in October or November.
He clarified that this is the only time when the market may have price stability.
Early on during the lockdown, milk production and consumption were both unaffected; nevertheless, consumption in the HoReCa (hotel, restaurant, and catering) sector substantially decreased, which caused an increase in milk commodity output. As milk commodities increased, prices for both commodities and the price of milk to farmers decreased.
The lockdown also restricted the movement of fodder, artificial insemination in dairy animals, restrictions on the movement of dairy animals, and the introduction of lumpy skin disease. As a result, farmers invested less in dairy, which reduced productivity, explained Sodhi in an interview with Outlook.&nbsp;

Lower milk yield and high demand is leading to rise in milk price. Average milk retail price increased by 12% Y-O-Y at Rs 57.15/litre

Milk price soars by 12% Y-O-Y, pushing overall inflation up

Lower milk yield and high demand is leading to rise in milk price. Average milk retail price increased by 12% Y-O-Y at Rs 57.15/litre

Milk prices continue to soar, which in turn is putting pressure on food inflation. The average retail price has increased by 12% year on year to Rs 57.15 per litre.
India&rsquo;s headline inflation for March dropped below RBI's target of 6%. Meanwhile, milk inflation remained above the overall figure at 9.31% in March 2023. The inflation in March 2022 was 4.7%. Bloomberg quoted India diary association president R S Sodhi and mentioned that the continuous increase in milk prices is problemetic.
"This trend of higher milk prices is problematic, since it is a highly price elastic product and has a direct impact on consumption,&rdquo; said R.S. Sodhi.&nbsp;
A major factor that affectd the milk price is, rise in cereals cost that made cattle feed expensive and cows were fed inadequately, which lead to lower dairy yield. Unseasonal rain and heat waves played a major role in the rise in feed prices. The cereal inflation was at 15.27% in March 2023. As per Financial Times, wholesale fodder inflation rose to 24% in February, sharply up from 7.14% recorded in January 2022.
However, even before a spike in cereal prices, farmers found it unable to feed their livestock due to the pandemic. Strict lockdown across the country, reduced the demand for milk as restaurants and sweet shops remained closed. Despite being one of the largest milk suppliers in the World, the country's massive amount of milk is produced by many small time farmers who are still unorganised. The drop in demand for milk and milk products during the pandemic, made it difficult for the Indian farmers to feed their cattle.
Amul's Jayen Mehta told Bloomberg, "A cow has to be fed irrespective of whatever quantity of milk it is giving and this is a pressure point for the producer".
The outbreak of lumpy skin disease among the livestock is also a prime factor for the drop in yield. This disease led to the death of an estimated 75,000 cattle and lower milk output from infected animals across several states.
A further rise in price is expected as the onset of summer will lead to less yield, due to heat stress and reduced availability of green fodder. At the same time, the demand is expected to remain high.
This demand-supply mismatch has helped the diary stocks gain and analysts believe that this will help organized players expand their share of overall market in India.&nbsp;
As per Financial Express, for the first time since 2011, India may resort to importing products like butter and ghee as their stocks are lower than in the previous fiscal. Milk production also dropped last fiscal after rising steadily for decades. Organised players in the sector have hiked the price several times in FY23.&nbsp;
Meanwhile, milk exports have also been rising after the pandemic. As per Bloomberg, India exported dairy products worth about $391.59 million in the 2021-22 fiscal year compared to $321.96 million in the year before that.

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