Mother Dairy announces an increase of ₹2 per litre on milk prices in NCR

Mother Dairy, a major supplier of dairy products, announced a ₹2 per litre increase in the milk prices effective from June 3, 2024. This surge is specific to the Delhi-NCR regions as mentioned by the company. Additionally, this price hike also applies to all the variants of milk, that includes full cream, toned, double-toned, buffalo, and cow milk. The full cream milk in Delhi-NCR, will now cost ₹68 per litre, while toned and double-toned milk will cost ₹56 and ₹50 per litre, respectively. The buffalo milk prices have also seen a spike and increased to ₹72, whereas, the cow milk prices have also increased to ₹58 per litre. The token milk (bulk vended milk) is slightly cheaper and costs ₹54 per litre.

The rising input costs over the past 15 months of the company is the primary reason for the price increase, as cited by the Mother Dairy. The company claims to have utilised these costs to maintain a stable consumer prices till date. Along with this, the recent heatwave across the country is crucially impacting the milk production of the company.

The company emphasises on the commitment to fair pricing for dairy farmers. It ensures the sustainability of dairy farming by passing on around 75-80% of milk sales revenue towards procurement of the milk. This also helps to maintain the availability of quality milk. Mother Dairy maintains the price hike of 3-4% with a motive of aiming to balance the interests of both producers and consumers.

The price increase by Mother Dairy is followed by a similar move by Amul on 2 June, 2024. Amul also raised the milk prices by ₹2 per litre across the country. This surge is attributed to increasing operational and production costs. Similar to Mother Dairy, Amul also highlights its policy of passing on most of the consumer payment (around 80 paise per rupee) to milk producers.