Mother Dairy has put out a revised price list for its liquid milk products. The milk brand hiked the prices by 2 per litre of milk in Delhi, NCR, as well as other key markets including east and central Uttar Pradesh, Mumbai, Nagpur and Kolkata. This change will come into effect from July 11, 2021. The new milk price will be applied across the board to all the milk-product variants the report said. The last revision took place almost two years ago in December of 2019. 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."
In the last year, the prices on farms have gone up by around 8 to 10 per cent. The added operational costs of processing, packaging and logistics, has been ever-growing. “It is pertinent to note that the farm prices of milk alone have firmed up by about 4 per cent in the last three-four 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 per cent," Mother Dairy said.
“The company has been experiencing inflationary pressure on the overall input costs which has increased multi-fold in the last one year, accompanied by the distress in milk production due to the ongoing pandemic," the leading milk-supplier said.
The dairy company added, “The surge in farm prices is only being partially passed on to the consumers, thereby securing the interests of both the stakeholders," The company claims that 75 to 80 per cent of the proceeds from the sales go towards procurement alone, saying that “The company believes in giving competitive and remunerative prices to the farmers to ensure sustainability of dairying and availability of safe milk for consumers.”
With the revised prices the milk and milk-based products will be sold at the following prices: bulk vended milk (token milk) will be sold at Rs 44 per litre, Full cream milk (poly pack) will be available at Rs 57 per litre. Toned milk has been hike to Rs 47 per litre. Double-toned milk (Live Lite) will now be Rs 41 per litre. Cow milk will cost Rs 49 per litre.
Mother Dairy is present and active in around 100 cities across India and sells approximately 30 lakh litres of milk in Delhi, NCR alone. It has a total sales margin of 35 lakh litres of milk a day.
Amul’s Milk Price Hike
This trend of price hikes is just the latest in the line of milk prices raised over the past few weeks. On June 30, the Gujarat Cooperative Milk Marketing Federation (GCMMF), which sells milk products under the Amul brand umbrella, hiked the prices in Delhi, NCR by Rs 2 per litre as well. The same followed in Ahmedabad and Saurashtra in Gujarat. These prices took effect from July 1. The reason behind these prices going up is due to the increased cost of input. The GCMMF said in a statement that this translates to a 4 per cent increase in the maximum retail price (MRP), which it claimed was lower than that of the average food inflation prices.
These input costs come in the form of higher rates for packing, transportation, storage and other logistics. The higher costs of transportation can be attributed to the recent trend that the country has seen with sky-high fuel prices that are in the triple digits.