Consumers will have to pay more for milk as leading dairy brands Amul and Mother Dairy are set to increase retail prices by ₹ 2 to ₹ 6 per litre from November 12. The price revision comes amid tightening milk supplies, higher procurement costs and an increase in key dairy production inputs.
According to industry sources, the extent of the price hike will differ across milk categories. Toned milk prices will increase by ₹ 2 per litre, while full cream milk will become costlier by ₹ 4. Full cream buffalo milk will see the steepest increase of ₹ 6 per litre.
In the Delhi-NCR market, toned milk sold through bulk vending machines will cost ₹ 60 per litre, compared with the existing price of ₹ 58. The price of packaged full cream milk will rise from ₹ 72 to ₹ 76 per litre, while packaged toned milk will increase from ₹ 60 to ₹ 62.
Full cream buffalo milk, with 6.5 per cent fat content, will become costlier from ₹ 80 to ₹ 86 per litre. Also Read | Karnataka CM Defends ₹8 Milk Price Hike, Says Move Will Protect Dairy Farmers Amid Drought
Mother Dairy will also revise prices of other milk variants. Double-toned milk will increase from ₹ 54 to ₹ 56 per litre, while cow milk will cost ₹ 65 per litre, up from ₹ 62.
- Amul is operated by the Gujarat Cooperative Milk Marketing Federation (GCMMF), with a vast cooperative network across India.
- Mother Dairy is a subsidiary of the National Dairy Development Board (NDDB), with strong presence in Delhi-NCR and northern India.
Limited milk supplies and rising costs push prices higher
The price revision comes at a time when milk availability would normally improve during the flush season, when dairy animals generally produce more milk. However, the current market situation points to supply constraints, putting pressure on procurement and processing costs.
One of the major factors behind the increase is the sharp rise in milk fat prices, which have reportedly climbed by around 20 to 25 per cent over the past few months. Higher fat costs have increased the expenses involved in processing and marketing liquid milk.
Rising cattle feed prices have added to the financial pressure on dairy farmers, increasing the cost of maintaining milch animals. To encourage farmers to maintain and improve milk production, dairy companies have also been raising procurement prices.
Higher procurement rates add to industry pressure
Industry sources said Amul has increased the procurement rate linked to milk fat to ₹ 1,000 per kilogram. This has enabled farmers to receive more than ₹ 60 per litre for milk, providing some support against rising production costs. Also Rea | KMF Agrees to Reduce Curd Price by ₹2 Per Litre Following CM’s Suggestion
Meanwhile, concerns over milk availability have also brought attention to the productivity of milch animals. Lower milk procurement has affected the availability of milk fat, making it more expensive for dairy companies to manage their production requirements.
Dairy processors generally depend on a combination of fresh milk, milk powder and milk fat to maintain liquid milk supplies when fresh procurement is insufficient. However, the recent increase in milk fat prices has made this arrangement more expensive.
With higher procurement payments, rising cattle feed costs and increased prices of milk fat, dairy companies are facing mounting operational expenses. The latest retail price revision is aimed at managing these cost pressures while maintaining milk supplies in the market.
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