Mother Dairy has hiked milk prices by INR 2 per litre in the Delhi-NCR market, effective Monday, June 3, 2024. This price increase applies to all milk variants and will also affect other markets where Mother Dairy operates. The decision is driven by rising input costs over the past 15 months.
This price hike follows a similar announcement by Amul, which also raised its milk prices by INR 2 per litre starting Monday. These increases come right after the conclusion of the Lok Sabha election voting process.
Continue Exploring: Amul milk prices hiked by INR 2/Litre across all variants
Mother Dairy stated, “We are increasing our liquid milk prices by INR 2 per litre across all operating markets from June 3, 2024 onwards.” This decision is intended to offset the rising production costs that have been impacting the industry for over a year.
In the Delhi-NCR region, the updated milk prices are as follows: full cream milk at INR 68 per litre, toned milk at INR 56 per litre, and double-toned milk at INR 50 per litre. Buffalo milk is now priced at INR 72 per litre, cow milk at INR 58 per litre, and token milk (bulk vended milk) will be sold at INR 54 per litre.
Mother Dairy, which distributes 3.5 million litres of fresh milk daily in Delhi-NCR, last adjusted its prices in February 2023. The company explained that despite rising procurement costs, consumer prices had been kept stable. Furthermore, the unprecedented heat stress across the country is anticipated to further affect milk production.
“Despite rising milk procurement costs in recent months, consumer costs remained stable,” Mother Dairy stated. “Additionally, the unprecedented heat stress across the country is expected to further impact milk production.” The company allocates an average of 75-80% of its milk sales revenue towards procurement, ensuring the sustainability of dairy farming and the availability of quality milk.
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Amul, marketed by the Gujarat Cooperative Milk Marketing Federation (GCMMF), also implemented a INR 2 per litre increase in milk prices starting Monday, attributing it to heightened operational and production expenses. Prior to this adjustment, Amul had maintained the prices of fresh pouch milk in major markets since February 2023. GCMMF highlighted, “Our member unions have also raised farmers’ prices by approximately 6-8 percent over the past year.”
Amul’s price increase, resulting in a 3-4% rise in MRP, is below the average food inflation rate. “This price adjustment will assist in maintaining profitable milk prices for our dairy farmers and motivating them to increase milk production,” noted GCMMF.
