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1. Rating agency CRISIL believes that milk prices will continue to rise over the
medium term on sustained demand-supply mismatch and increasing input
costs.

2. Domestic demand for dairy products remaining strong, the demand-supply gap is
expected to continue to widen over the medium term.
3. This, along with increasing input (fodder and transportation) costs, will push milk
prices up over the next three to five years.

4. The demand for milk and value-added dairy products in the domestic market
has been growing at over 6% to 8% per annum because of increasing
income, rising aspirations, and consequent growth in per capita milk
consumption.