Mother Dairy follows Amul in increasing milk prices by ₹ 2 per litre

Following Amul, Mother Dairy announced ₹ 2 per litre increase in milk prices in the Delhi-NCR region, citing rising input costs over the past 15 months.

This price hike, effective from June 3, 2024, applies to all variants of milk and follows a similar increase announced by Amul the day before.

Both companies’ price hikes were announced just after the completion of the Lok Sabha election voting process.

Mother Dairy’s statement explained that the price increase is necessary to compensate producers for the increased production costs experienced over the last year. In Delhi-NCR, full cream milk will now cost ₹ 68 per litre, while toned and double-toned milk will be priced at ₹ 56 and ₹ 50 per litre, respectively. Buffalo and cow milk prices have risen to ₹ 72 and ₹ 58 per litre, and token milk (bulk vended milk) will be sold at ₹ 54 per litre.

Mother Dairy, which sells 35 lakh litres of fresh milk daily in Delhi-NCR, last revised its prices in February 2023. Despite rising procurement costs, consumer prices were previously maintained. The company noted that unprecedented heat stress across the country has further impacted milk production.

The company passes an average of 75-80 per cent of sales revenue from milk back to producers, ensuring the sustainability of dairy farming and the availability of quality milk. The current price surge is being only partially passed on to consumers, with a 3-4 per cent effective increase.

Similarly, the Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets dairy products under the Amul brand, increased milk prices by ₹ 2 per litre starting Monday. GCMMF stated that the price hike is due to rising operational and production costs. Over the last year, member unions have increased farmers’ prices by approximately 6-8 per cent.

Amul passes on nearly 80 paise of every rupee paid by consumers to milk producers. The price revision aims to maintain remunerative milk prices for producers and encourage higher milk production.

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