Mother Dairy has decided to hike milk prices by ₹2 per liter in Delhi-NCR market with effect from Tuesday, citing rise in input costs.
This is the fifth round of hike in milk prices this year by Mother Dairy, one of the leading milk suppliers in Delhi-NCR with volumes of more than 30 lakh liters per day.
Mother Dairy has increased the prices of full-cream milk by ₹2 to ₹66 per liter, while toned milk rate has been revised to ₹53 per liter from ₹51 per liter.
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Double-toned milk rate has been increased to ₹47 per liter from ₹45 per liter.
Mother Dairy has decided not to raise prices of cow milk and token (bulk vended) milk variants.
The hike in milk prices will hit household budgets.
Mother Dairy attributed the hike in prices to an increase in the company’s procurement cost of raw milk from dairy farmers.
“It is an unprecedented year for the dairy industry. We have been witnessing a significant increase in demand for milk and milk products from both consumers and institutions, even after festivals. On the other hand, procurement of raw milk has also not picked up after Diwali as expected,” the company said.
The procurement prices of raw milk have gone up by about 24 per cent over the last year due to higher input costs and heatwave conditions, it pointed out.
“This stress on the raw milk prices is being felt across the industry, putting pressure on the consumer prices. In our commitment to continue paying remunerative prices to farmers to ease the impact, we are severely constrained to revise consumer prices of select variants of milk in Delhi NCR effective from December 27, 2022,” Mother Dairy said.
As a responsible organisation, the company said it has always endeavored to strike a right balance between farmers and consumers. “…therefore, we have been passing the increased input cost to our consumers partially on select variants and in a phased manner.”
Mother Dairy passes on about 75-80 per cent of prices paid by consumers to the milk producers.
The company has taken several rounds of price increase in the current calendar year. The last hike was on November 21, when it increased prices of full-cream milk by Re 1 per liter and token milk by ₹2 per liter in Delhi-NCR market.
Before that, Mother Dairy had in October increased prices of whole cream milk and cow milk by ₹2 per liter in Delhi-NCR and some other markets in North India.
Rates were raised by ₹2 per liter for all variants in March and August as well.
Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets milk under the Amul brand, is also a major player in the Delhi-NCR market. It sells nearly 40 lakh liters per day. Milk output in India, the world’s largest producer, is around 210-220 million tonnes annually.