Mother Dairy announced on Monday that milk prices in the Delhi-NCR market will increase by ₹ 2 per litre as a result of an increase in input costs during the previous 15 months. All milk varieties will see price increases starting on Monday, June 3, in Delhi-NCR and other markets where the product is sold.
Amul declared a rate increase on Sunday.
Just after the Lok Sabha election voting process is over, these two major milk suppliers raise their milk prices.
Mother Dairy announced in a statement that, starting on June 03, 2024, “it will increase its liquid milk prices by ₹ 2 per litre across all operating markets.”
According to the statement, the primary reason for the increase in consumer prices is to make up for the producers’ higher production costs, which have been rising for more than a year.
Full cream milk from Mother Dairy will now cost ₹ 68 per litre in Delhi-NCR, while toned and double-toned milk will cost ₹ 56 and ₹ 50 per litre, respectively.
The cost of a litre of cow and buffalo milk is now ₹ 58 and ₹ 72, respectively.
The price per litre of token milk, or bulk vended milk, will be ₹ 54.
Mother Dairy stated that it last updated its liquid milk prices in February 2023. Mother Dairy presently sells 35 lakh liters of fresh milk per day in Delhi-NCR.
“Consumer prices remained the same even though milk procurement costs increased in the previous few months. Furthermore, Mother Dairy stated that the country has never experienced such high heat stress, which will probably have an additional negative effect on milk production.
The company stated that, on average, it allocates between 75 and 80 percent of milk sales proceeds to procurement.
This contributes to maintaining dairy farming’s viability and the supply of high-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,” said Mother Dairy.
On late Sunday, the Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets dairy products under the Amul brand, increased milk prices by about ₹ 2 per litre from Monday across the country.
The increase of ₹ 2 per litre translates to 3-4 per cent increase in MRP which is much lower than average food inflation, GCMMF said in a late night statement.
GCMMF said that since February 2023, it has not made any increase in prices of fresh pouch milk in major markets.
“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.
