Mother Dairy Increases Milk Prices by Rs 2 per Litre

Due to rising input costs, leading milk supplier Mother Dairy has increased milk prices in Delhi-NCR and other cities by Rs 2 per litre from Sunday. The last time milk prices were changed in December, 2019.

Mother Dairy justified the increase by claiming that the cost of obtaining milk from dairy farmers has increased by 8-10% since last year. Other operating costs have risen as well.

Amul raised milk prices by Rs 2 per litre across all cities on July 1. "With effect from July 11, 2021, Mother Dairy is constrained to boost its liquid milk rates by Rs 2 per litre in Delhi NCR," the company said.

From July 11 onwards, prices in important markets such as east and central Uttar Pradesh, Mumbai, Nagpur, and Kolkata will be updated by Rs 2 per litre on the present prevailing MRP in those markets, the company added.

Mother Dairy milk is sold in more than 100 cities across the nation. In Delhi-NCR, it sells roughly 30 lakh litres of milk per day, with a total of 35 lakh litres sold per day.

"The company has been experiencing inflationary pressure on overall input costs, which have climbed multifold in the last year, accompanied by milk production difficulty owing to the ongoing pandemic," according to the statement.

Farm prices have grown by 8-10% in the last year, owing to rising processing, packaging, and logistics expenses.

It's worth mentioning that milk farm prices have increased by around 4% in the last three to four weeks. Despite paying higher milk procurement rates in the previous year, consumer prices remained unchanged. "Milk prices are being raised by 4% as a result of this modification," Mother Dairy said.

According to the corporation, it has always strived to find a balance between customers and milk producers. "The increase in farm prices is only partially passed on to consumers, securing the interests of both stakeholders," the report continued.

Mother Dairy stated that it spends about 75-80 percent of its milk sales revenue on milk procurement.

"The company believes in providing farmers with competitive and remunerative rates in order to ensure the long-term viability of dairying and the supply of safe milk for consumers," according to the statement.

According to the revised prices, bulk vended milk (token milk) will be sold at Rs 44 per litre starting on Sunday, up from Rs 42. Full cream milk (poly pack) will cost Rs 57 per litre, up from Rs 55. Toned milk prices have been raised to Rs 47 per litre from Rs 45 per litre, while double toned milk (Live Lite) rates have been raised to Rs 41 per litre from Rs 39 per litre.

From Sunday, cow milk will cost Rs 49 per litre, up from Rs 47. The price of a half-litre milk pouch has been raised by Rs 1, resulting in a price rise of Rs 2 per litre.