Mother Dairy on Monday announced a ₹2 per litre hike in milk prices in the Delhi-NCR market due to a rise in input cost over the last 15 months.
The increase in prices of all variants of milk is effective from Monday (June 3) in Delhi-NCR as well as other markets where it has a presence.
Amul announced a hike in prices on Sunday, coinciding with the completion of Lok Sabha election voting. Following suit, Mother Dairy declared an increase of ₹2 per litre across all its liquid milk products from June 3, 2024.
This rise in consumer prices aims to offset the mounting production costs faced by producers over the past year.
In the Delhi-NCR region, full cream milk will now cost ₹68 per litre, while toned and double-toned variants will be priced at ₹56 and ₹50 per litre, respectively. Additionally, buffalo and cow milk prices have been raised to ₹72 and ₹58 per litre, respectively.
Token milk (bulk vended milk) will be sold at ₹54 per litre.
Mother Dairy, which currently sells 35 lakh litres of fresh milk per dayin Delhi-NCR, said it had last revised its liquid milk prices in February 2023.
"Despite paying higher prices towards milk procurement in the last few months, the consumer prices were kept intact. Moreover, the heat stress across the country has been unprecedented, and it will likely impact milk production further," Mother Dairy said.
The company highlighted that it passes an average of 75- 80 per cent of the sales realisation from milk towards its procurement.
This helps ensure the sustenance of dairy farming and the availability of quality milk.
"The surge in farm prices is only being partially passed on to the consumers, with an effective revision of 3-4 per cent, thereby securing the interests of both the milk producers and the consumers," Mother Dairy said.
On Sunday night, the Gujarat Cooperative Milk Marketing Federation (GCMMF), responsible for marketing dairy products under the Amul brand, announced a nationwide increase in milk prices by approximately ₹2 per litre, effective from Monday.
According to a statement released late at night, the ₹2 per litre hike corresponds to a 3-4 percent rise in the Maximum Retail Price (MRP), which is notably lower than the average food inflation rate.
GCMMF emphasized that there have been no price adjustments for fresh pouch milk in major markets since February 2023.
“This price hike is being done due to an increase in the overall cost of operation and production of milk. Our member unions have also increased farmer's price approximately by 6-8 per cent over the last one year,” GCMMF said.
Amul, as a policy, passes on almost 80 paise of every rupee paid by consumers for milk and milk products to the milk producers.
“The price revision shall help in sustaining remunerative milk prices to our milk producers and to encourage them for higher milk production,” the statement had said.
(With inputs from PTI)
