Mother Dairy to hike milk prices in Delhi-NCR by Rs 2 per litre from July 11

Leading milk supplier Mother Dairy has increased milk prices in Delhi-NCR and other cities by Rs 2 per litre with effect from Sunday on rising input cost. The milk prices were last revised in December 2019. Justifying the hike, Mother Dairy said that procurement cost of milk from dairy farmers has gone up by 8-10 per cent in the last one year. Other operational costs have also risen.

On July 1, Amul hiked milk prices by Rs 2 per litre across all cities.

Mother Dairy said it is “compelled to raise its liquid milk prices by Rs 2/litre in Delhi NCR with effect from July 11, 2021.” Prices are also being revised across key markets including east and central Uttar Pradesh, Mumbai, Nagpur and Kolkata from July 11 onwards to the tune of Rs 2/litre on the current prevailing MRP in respective markets, it added.

Mother Dairy milk is available in over 100 cities across the country. It sells around 30 lakh litres of milk per day in Delhi-NCR, while the total sale is 35 lakh litres per day.

Surge in farm prices

“The company has been experiencing inflationary pressure on the overall input costs which has increased multifold in last one year, accompanied by the distress in milk production due to the ongoing pandemic,” the statement said. In the last one year, the farm prices have increased to the tune of 8-10% coupled with mounting operational costs of processing, packaging and logistics.

“It is pertinent to note that the farm prices of milk alone have firmed up by about 4% in the last 3-4 weeks. Despite paying higher prices towards milk procurement in the last one year, the consumer prices were kept intact. With this revision, the milk prices are undergoing a revision of 4%,” Mother Dairy said. The company said it has always attempted to strike the right balance between the consumers and the milk producers.

“The surge in farm prices is only being partially passed on to the consumers, thereby securing the interests of both the stakeholders,” it added. Mother Dairy highlighted that it passes close to 75-80% of the sales realisation from milk towards the procurement of milk. “The company believes in giving competitive and remunerative prices to the farmers to ensure sustainability of dairying and availability of safe milk for consumers,” the statement said.

Revised rates

As per the revised prices, bulk vended milk (token milk) will be sold at Rs 44 per litre from Sunday as against the current price of Rs 42 per litre. Full cream milk (poly pack) will be available at Rs 57 per litre up from Rs 55 per litre now. Prices of toned milk have been revised to Rs 47 from Rs 45 per litre, while double toned milk (Live Lite) rates have gone up to Rs 41 from Rs 39 per litre. Cow milk will cost Rs 49 from Sunday as against Rs 47 per litre now. Rates of half litre milk pouch have been increased by Rs 1, which means an effective hike of Rs 2 per litre.