03september2021 Nuflower Foods Engagement Dairy
- Had a Detailed discussion with Vishwas Ji of Nuflower on SMP Fundamentals and Outlook . Also had a pricing strategy discussion on SMP procurement:
- As per our discussion, currently SMP demand is good in Maharashtra because of festive demand and there is no pressure of milk arrivals. Companies across India are trying to dispose off older stocks and prepare for upcoming flush season.
- Milk arrivals are expected to improve by end of September in Northern and Western region.
- National SMP Stocks are at around 217 KTs which is on a moderately higher side which will try put pressure on prices. But upcoming festive demand in October and marriage demand from November to February will try to support the prices and keep the prices on a stable note with an upward bias.Also, raw milk prices are ruling INR 25-26 per litre, higher by 1-2 per litre from the last month which will increase the production cost of SMP.
- SMP prices are expected to stay in stable zone with an upward bias of INR 10-15 per kg. Prices are expected to move between INR 210-230 per kg in Maharashtra and Karnataka in the coming 1-2 months.
- In North, prices are expected to move between INR 250-270 per kg in the coming 1-2 months.