Popular milk brands Amul and Mother Dairy have decided to raise their milk prices by Rs 2 per liter from Wednesday to offset rising supply costs.
The rise – which comes days before Janmashtami celebrations and months before the harvest season, when milk supplies typically increase – may impact household budgets, as milk is one of the most consumed.
For dairy companies, milk supply costs have increased due to increased feed rates for farmers. In the case of milk, 70-80% of the price paid by the consumer is directly passed on to farmers as the purchase price.
According to Mother Dairy, over the past five months raw milk producer prices alone have strengthened by 10-11%, while feed and fodder costs have risen significantly due to the heatwave observed earlier in the country and on given the prolonged summer season.
The last time Mother Dairy raised prices was in March when it raised milk prices by Rs 2 per liter in Delhi-NCR (National Capital Region). Mother Dairy is one of the major suppliers of milk in the Delhi-NCR market and sells over 3 million liters per day in polythene packs and through vending machines.
After the hike, whole milk will cost Rs 61 per litre, down from Rs 59 per litre.
The price of tonic milk will rise to Rs 51, while that of two-tone milk will jump to Rs 45 per litre. The price of cow’s milk has been increased to Rs 53 per litre.
The price of milk sold in bulk (symbolic milk) was raised to Rs 48, against Rs 46 per litre.
The Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets its dairy products under the Amul brand, has also increased the prices of its milk brands Gold, Taaza and Shakti by Rs 2 per litre.
The new prices will be applicable in Gujarat, Delhi-NCR, West Bengal, Mumbai and other markets where Amul markets its fresh milk, GCMMF said in a statement.
The Rs 2 per liter hike translates to a 4% increase in MRP, which is below average food inflation, the company added.
In the markets of Ahmedabad and Saurashtra, the price of 500ml of Amul Gold will now be Rs 31, Amul Taaza will be Rs 25 and Amul Shakti will be Rs 28.
“The cost of livestock feed alone has increased by around 20% compared to last year. With rising input costs, our member unions have also increased prices for farmers in the around 8-9% from the previous year,” Amul said. .