Mother Dairy raises full-cream milk price by Re 1 per litre; token milk by ₹2/litre in Delhi-NCR

Faced with a rise in input costs, leading milk supplier Mother Dairy has increased prices of full-cream milk by Re 1 per litre and token milk by ₹2 per litre in Delhi-NCR market with effect from Monday. However, the firm hasn't altered the rates of full-cream milk sold in 500 ml packs.

This is the fourth round of hike in milk prices in 2022 by Delhi-NCR's leading milk supplier Mother Dairy. The company is one of the leading milk suppliers in Delhi-NCR with volumes of over 30 lakh litres per day.

Mother Dairy has raised the prices of full-cream milk by Re 1 to ₹64 per litre, a company spokesperson was quoted as saying by PTI. Token milk (bulk vended milk) will be sold at ₹50 per litre from tomorrow, as against ₹48 per litre now.

Hike in milk prices

The hike in milk prices will hit household budgets at a time when food inflation is already at a high level.

Mother Dairy has attributed the hike in rates to increase in its procurement cost of raw milk from dairy farmers.

The Mother Dairy spokesperson said, "This year, the entire dairy industry is witnessing a huge gap in the demand and supply of milk."

The availability of raw milk has been impacted due to the increased cost of feed and fodder, and erratic monsoon, putting a stress on prices of raw milk, the spokesperson added.

Moreover, Mother Dairy said the demand for processed milk has gone up.

"The ongoing mismatch in the demand-supply, even after the festive season, has further led to firming of raw milk prices. We are therefore constrained to partially pass on the impact with revision in consumer prices of certain variants," the spokesperson said.

The company further said that the revision in prices will enable it to continue supporting farmers with right remuneration while ensuring quality milk for consumers.

In Delhi-NCR, the company has hundreds of milk booths as well as Safal retail outlets.

Mother Dairy passes on about 75-80% of prices paid by consumers to the milk producers.

Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets milk under the Amul brand, is also a major player in the Delhi-NCR market. It sells nearly 40 lakh litres per day.

Mother Dairy has 9 company-owned processing plants for dairy. The firm also undertakes processing at third party facilities. Total milk processing capacity is over 50 lakh litres per day. For fresh fruits and vegetables, the company has its own 4 plants, while for edible oils it manufactures through 16 associated plants.

In India, milk output is around 210 million tonnes on an annual basis.

With agency inputs