Home / Companies / News /  Mother Dairy follows Amul to raise milk prices

NEW DELHI: Mother Dairy is set to hike the price of liquid milk by 2 a litre in Delhi-NCR effective 11 July. "Inflationary pressure on the overall input costs" have prompted the company to raise prices after a gap of a year and a half. The price increases will be applicable to all variants of milk sold by Mother Dairy.

In addition, the company’s consumer milk prices are being revised across key markets including East and Central Uttar Pradesh, Mumbai, Nagpur, Kolkata effective 11 July 2021, to the tune of Rs. 2/litre on the current MRP.

Milk prices were last revised December 2019, the company said. Mother Dairy sells milk in over 100 cities across the country.

Over the past one-year farm prices of milk have increased to the tune of 8-10%, along with higher operational costs of processing, packaging, logistics, the company said in a statement to the press.

“The company has been experiencing inflationary pressure on the overall input costs which has increased multi-fold in last one year, accompanied by the distress in milk production due to the ongoing pandemic," it said.

Mother Dairy’s move follows that of dairy giant Amul that too raised prices of fresh milk by 2 per litre pan-India effective 1 July, citing higher input costs.

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 added.

Its 500 ml full toned milk will now cost 29 up from 28, while 500 ml pack of toned milk will cost 24 up from 23.

The surge in farm prices is only being partially passed on to the consumers, thereby securing the interests of both the stakeholders. It is important to note that Mother Dairy passes close to 75-80% of the sales realization 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, it added.

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