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High Mutton Prices, Low Farmer Returns

18 0
26.03.2026

Mutton is not just a food item in Kashmir; it is an integral part of the Valley’s culture, cuisine, and social life. From daily meals to special gatherings, its demand remains consistently high, throughout the year. However, the recent surge in mutton prices has brought into focus a deeper and more critical issue: who is actually benefiting from this price rise — the sheep farmer or butchers and intermediaries (Kothdars)? At present, retail mutton prices in Kashmir are hovering around ₹700–₹750 per kilogram, often climbing even higher during peak demand periods such as Ramzan. While consumers feel the pinch of these escalating prices, the situation at the farmer’s level presents a stark contrast.

Rising Demand, Untapped Local Potential

Kashmir has a strong tradition of sheep rearing, and in recent years, the sector has gained renewed importance as a source of livelihood for rural youth. Government initiatives and schemes have encouraged many young entrepreneurs to take up sheep farming as a viable employment opportunity. The Valley’s annual mutton consumption is estimated to be around 500–600 lakh kilograms, while local production stands at approximately 300–350 lakh kilograms. This significant gap is met through imports from other states, leading to a continuous outflow of resources from the region. On paper, such high demand should translate into better returns for local farmers. However, the ground reality tells a different story.

Farmers at the Losing End

Despite high retail prices, many sheep farmers report receiving only around ₹300 to 350 per kilogram (live weight) for their animals. Considering the time, effort, and investment involved in raising sheep — including feed, healthcare, and labor — these returns are far from satisfactory. A farmer spends months nurturing livestock, only to sell it at a price that barely covers the cost of production. Once the same animal passes through the supply chain and reaches the consumer, its value increases significantly. This wide gap between farm-gate price and retail price clearly indicates that the primary producer is not receiving a fair share of the final market value.

Market Control and Role of Kothdars

One of the key reasons behind this imbalance is the dominance of intermediaries in the mutton trade. The system is largely controlled by middlemen and butcher groups, commonly referred to as Kothdars, who handle procurement, slaughtering, and retail distribution. Most farmers, especially small and emerging entrepreneurs, do not have direct access to markets. They are compelled to sell their livestock to these intermediaries, often under pressure and with limited bargaining power. This structure allows middlemen to purchase animals at lower rates while maintaining high retail prices, resulting in disproportionate profit distribution within the value chain.

Lack of Pricing Mechanism and Policy Support

Unlike agricultural crops, where farmers benefit from mechanisms like Minimum Support Price (MSP), sheep farming in Kashmir lacks any structured pricing support. There is no benchmark rate to safeguard farmers against exploitation. At the same time, there is limited transparency in retail pricing. Consumers are paying high prices, yet there is no assurance that these increases are benefiting the producers. This absence of regulation creates an environment where farmers remain vulnerable while intermediaries dominate the market dynamics.

Another significant factor affecting local farmers is the large-scale import of sheep and mutton from outside Jammu and Kashmir. During high-demand seasons, trucks loaded with livestock arrive daily from states such as Rajasthan and Punjab. While imports help meet consumer demand, they also create stiff competition for local producers. This often leads to suppressed prices for locally reared sheep, further reducing farmers’ profitability. Thus, despite having the natural resources and potential for self-sufficiency, Kashmir continues to depend heavily on external supply.

Introduction of a Minimum Support Price (MSP) for Sheep

Establishment of Regulated Livestock Markets (Mandis)

Promotion of Farmer Producer Organizations (FPOs)

Development of Direct Marketing Channels

Rationalization of Imports

Price Monitoring and Transparency

Support for Young Entrepreneurs

The mutton market in Kashmir reflects a clear paradox — high prices for consumers, but low returns for farmers. This imbalance not only affects the livelihood of sheep farmers but also discourages young entrepreneurs from entering the sector. A transparent, regulated, and farmer-centric system is the need of the hour — one that ensures that the true backbone of the industry, the farmer, receives his rightful share.

Dr. Arfat Aalum, Veterinary Assistant Surgeon (VAS), Sheep Husbandry Department, Kashmir


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