With effect from today, Mother Dairy would increase milk prices in the Delhi-NCR market by Rs 2 per litre, citing an increase in input costs. Mother Dairy, one of the top milk suppliers in Delhi-NCR with volumes of more than 30 million litres per day, has raised milk prices five times this year.
Full-cream milk now costs Rs. 2 more per litre at Mother Dairy, at Rs. 66 per litre, while toned milk costs Rs. 53 per litre, up from Rs. 51 per litre. The price of double-toned milk has gone up to Rs. 47 per litre from Rs. 45 per litre.
Mother Dairy has agreed not to increase prices for token (bulk-vended) milk alternatives and cow milk. The cost of living will be affected by the milk price increase.
Mother Dairy blamed the price rise on an increase in the cost of buying raw milk from dairy producers. The company was seen stating, “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 was anticipated.”
Input cost increases and the recent heatwave have led to an increase in raw milk procurement prices of roughly 24%, it was noted.
As per press reports "This stress on the raw milk prices is being felt across the industry, putting pressure on 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."
The company said that as a responsible organization, it has always made an effort to create a balance between farmers and customers.
In the current calendar year, the corporation has increased prices on a number of occasions. On November 21, prices for full-cream milk and token milk in the Delhi-NCR market increased by Rs. 1 per litre and Rs. 2 per litre, respectively.
Before that, Mother Dairy raised the cost of full-cream milk and cow milk by Rs 2 per litre in Delhi-NCR and a few other North Indian markets in October. In March and August, prices were also increased by Rs 2 per litre for all variations.
Another significant competitor in the Delhi-NCR market is Gujarat Cooperative Milk Marketing Federation (GCMMF), which sells milk under the Amul brand. Each day, it sells close to 40 lakh litres. India is the greatest producer of milk in the world, with an annual production of between 210 and 220 million tonnes.
