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Skimmed milk powder (SMP) and Ghee (anhidrous butter, 99% butter fat) are two of the main dairy products of India. During winter, at the peak of production, Indian dairy companies produce SMP for meeting the country's ever growing full-year demand of milk.
On this page the prices of SMP and Ghee Butter are used to calculate the theoretical value of the milk used for their production.
This page offers:
- the SMP + GHEE Payout, which calculates the valorization of milk produced in India
- a Comparison between the prices of SMP and anhidrous butter in India, Oceania, the United States and the European Union.
For more information about the indian dairy sector check India overview page >
Payout SMP + anhidrous butter (Ghee) in India
Considering the latest prices of SMP and Ghee in India, and some assumptions, this Payout calculates the theoretical value of whole milk produced in India and processed into SMP and Ghee.
| INITIAL VARIABLES: | |
|---|---|
|
100 LT of Whole Milk with 3.5% p.p.m.g. Fat and 8.5% p.p. of Solids-non-fat (SNF) |
|
| 100 LT of Whole Milk = 103 Kg of Whole Milk | |
| PROCESSING of Whole Milk at 3.5% p.p. m.g. fat, 8.5% p.p. SNF | |
|---|---|
|
a. 3.5% p.p.m.g. Fat * 103 Kg Milk = 3.61 Kg of FAT
which produces: 3.62 Kg of ANHIDROUS BUTTER (GHEE) (Butter 99.6% fat) |
b. 8.5 %p.p. SNF *103 Kg Milk = 8.76 Kg di SNF
which produces: 9.12 Kg of SMP |
| Your values | Current prices and indicative values |
|
| Butter price | INR/Kg | 629 INR/Kg |
| SMP price | INR/Kg | 269 INR/Kg |
| Processing Cost | INR/100LT | 300 INR/100LT |
| P-P Expenses* | INR/100LT | 200 INR/100LT |
| Theoretical price |
4230
INR/100LT 43.98USD/100Kg |
4230 INR/100LT 43.98 USD/100Kg |
| CALCULATE RESET | ||
| *Post Procurement Expenses. Latest update: 2 - 2026 | ||
The following graph shows the historical trend of the results of the Payout SMP + Ghee in India and compares it with the price of whole milk recorded by the source.
The following graph shows the historical trend of the results of the SMP + anhydrous butter Payout in India, according to the default values. The India payout is compared with the payouts of USA, Oceania and Germany, in which butter (82% fat substance) has beeen converted to anhidrous butter (99%).
SMP and anhidrous butter, price comparison
The following tables compare the prices of SMP and anhidrous butter in the main playing countries in the World, converted into INR/Kg (Indian Rupees per kilogram). Finally, the charts complete the comparison by adding price trends in India.
Note: The prices of anhidrous butter are mathematically calculated from the prices of butter.
 /Kg |
SMP: International prices (₹) | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Germany | Oceania | USA | India | ||||||||||||
| 2025 | 2026 | % vs '25 | 2025 | 2026 | % vs '25 | 2025 | 2026 | % vs '25 | 2025 | 2026 | % vs '25 | ||||
| January | 224 | 224 | +0,1% | 241 | 233 | -3,3% | 261 | 242 | -7,3% | 234 | 263 | +12,4% | |||
| February | 225 | 254 | +12,6% | 256 | 264 | +3,2% | 249 | 312 | +25,2% | 233 | 269 | +15,5% | |||
| March | 231 | 287 | +24,3% | 252 | 308 | +22,1% | 225 | 355 | +58,0% | 247 | |||||
| April | 233 | 301 | +29,2% | 253 | 338 | +33,8% | 217 | 402 | +85,3% | 266 | |||||
| May | 231 | 252 | 226 | 267 | |||||||||||
| June | 241 | 244 | 239 | 252 | |||||||||||
| July | 239 | 239 | 238 | 248 | |||||||||||
| August | 245 | 255 | 245 | 256 | |||||||||||
| September | 236 | 233 | 237 | 262 | |||||||||||
| October | 223 | 230 | 223 | 256 | |||||||||||
| November | 216 | 229 | 224 | 256 | |||||||||||
| December | 217 | 227 | 228 | 253 | |||||||||||
| Average | 231 | 264 | 243 | 273 | 235 | 312 | 253 | 266 | |||||||
|
SOURCES: Germany: Süddeutsche Butter - und Käsebörse eV, Kempten USA: USDA Oceania: USDA India: Indian Dairy Association |
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| /Kg |
ANHYDROUS BUTTER: International prices (₹) | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Germany | Oceania | USA | India | ||||||||||||
| 2025 | 2026 | % vs '25 | 2025 | 2026 | % vs '25 | 2025 | 2026 | % vs '25 | 2025 | 2026 | % vs '25 | ||||
| January | 791 | 533 | -32,7% | 695 | 568 | -18,2% | 574 | 343 | -40,2% | 562 | 592 | +5,3% | |||
| February | 772 | 549 | -29,0% | 757 | 640 | -15,5% | 545 | 425 | -21,9% | 578 | 629 | +8,8% | |||
| March | 831 | 586 | -29,5% | 779 | 757 | -2,8% | 529 | 457 | -13,7% | 570 | |||||
| April | 846 | 559 | -34,0% | 769 | 739 | -3,8% | 521 | 433 | -17,0% | 582 | |||||
| May | 833 | 795 | 533 | 612 | |||||||||||
| June | 882 | 819 | 576 | 611 | |||||||||||
| July | 879 | 779 | 576 | 610 | |||||||||||
| August | 853 | 769 | 524 | 608 | |||||||||||
| September | 773 | 738 | 427 | 645 | |||||||||||
| October | 692 | 717 | 380 | 658 | |||||||||||
| November | 639 | 678 | 349 | 650 | |||||||||||
| December | 541 | 582 | 342 | 600 | |||||||||||
| Average | 789 | 556 | 740 | 655 | 492 | 407 | 607 | 611 | |||||||
|
SOURCES: Germany: Süddeutsche Butter - und Käsebörse eV, Kempten USA: USDA Oceania: USDA India: Indian Dairy Association |
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