Hatsun Agro, Heritage Foods: Dairy stocks in focus as firms raise milk prices; things to know

However, the stocks lost momentum and pared their gains later. Still, most were in the green.

The increase, the second in 13 months by the two dairy cooperatives, is expected to prompt similar hikes by regional dairy companies.

Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets milk and milk products under the Amul brand, in a statement said it has "increased the prices of fresh pouch milk by Rs 2 per litre in major milk-selling variants/packs across India effective from May 14".

Separately, Mother Dairy said it has revised the consumer prices of its liquid milk variants by ₹2 per litre, effective Thursday.

The last price increase by GCMMF was on May 1, 2025, while Mother Dairy had raised rates in April 2025.

The price increase by India's two largest organised milk retailers will add to food inflation, which has risen in recent weeks due to the conflict in West Asia.

The food inflation in April crossed the 4% mark, and the latest milk price increase will add to the burden of the common man.

Why the hike?

"The price hike is being done due to an increase in the overall cost of operation and production of milk. There is a substantial increase in the cost of cattle feed, milk packaging film, and fuel during the year," GCMMF said.

The cooperative said its member unions have also increased farmers' procurement price by ₹30 per kg of fat, which is a 3.7% increase over May 2025.

On the price hike, Mother Dairy said, "The revision has been necessitated in view of the sustained increase in farmer procurement prices, of around 6% over the past one year, despite continued efforts to limit the impact on consumers."

Impact on dairy stocks

The milk price hike by Amul and Mother Dairy, according to analysts, is likely to be positive for dairy stocks such as Heritage Foods, Parag Milk Foods, Dodla Dairy, and Hatsun Agro Product, as it can help companies offset higher raw milk procurement and input costs, thereby supporting margins and profitability.

The move also signals improving pricing power for dairy players amid persistent inflationary pressures.

How dairy stocks were performing in morning trade

Hatsun Agro Product was trading nearly 1% higher at ₹948 on the NSE, while Heritage Foods was up 0.28% at ₹335.30. Milkfood was trading over 1% higher at ₹61.99 on the BSE.