Both consumers and manufacturers are impacted by inflation. The theory that commodity prices often rise during inflationary periods is supported by historical evidence for the costs of inputs in dairy farming. If all other conditions remain constant, higher commodity prices will raise demand globally for agricultural like seeds, fertiliser, livestock, farm equipment, etc. where the animal feed comes? The costs of dairy inputs like feed, labour pushing up input prices. Increased interest rates can also affect the cost of living for families as a whole, the value of land, and currency rates, all of which have an effect on the overall purchasing power of farm resources. From a short-term viewpoint in dairy farming, the higher costs in India will increase production costs by 15% this year, primarily due to feed, and by around 8% the next year. This will maintain some financial pressure on dairy farmers and restrain the expansion of milk production, both of which should support dairy prices. Eventually, feed and energy costs will decline and slightly reduce the cost of manufacturing. Additionally, over a longer period of time, farmers will discover more cost-effective ways to operate their dairy farms. However, increasing expenses will short-term stifle production and contribute to an increase in dairy prices. In the previous 20 years, India's economy has grown at a fast rate, but this expansion has been accompanied by a high rate of inflation in the cost of goods produced. The dairy industries have continued to grow extremely slowly, with very uneven growth. The demand has grown dramatically as a result of the rise in per capita income, but dairy and agricultural production cannot keep up with the surge in demand. If the cost of a litre rises by one rupee, every component required to produce ordinary milk costs one rupee more. In addition to a 1% increase in milk prices, there will also be a 4% total increase in labour, transportation, and feed costs. Since the farmer who produces milk is the one who is most impacted, controlling the cost of production is crucial. The proportion of feeds is larger due to the dearth of abundant wet fodder and the research area's location in a rain shadow. Dairy farmers in the study area are experiencing higher inflation as a result of continued feed price volatility.