Mother Dairy to raise milk prices by ₹2–₹4 per litre
Mother Dairy’s full-cream milk will sell for ₹76 a litre, compared with ₹72 previously. Its toned variety will rise from ₹60 to ₹62, while double-toned milk will move from ₹54 to ₹56. Amul introduced a nationwide increase of ₹2 a litre for its main milk varieties in May. In Kerala, the government raised Milma’s retail prices by ₹4 a litre in July.
Other increases cover wholesale supplies and payments for milk procurement. The Mumbai Milk Producers Welfare Association (MMPA) lifted its wholesale buffalo-milk price to ₹102 a litre from ₹93. Tamil Nadu’s government increased procurement prices by ₹9 a litre, also to ₹102. Karnataka’s cabinet approved an increase of ₹8 a litre for Nandini milk, effective from November.
Dairy products have also become more expensive. A 500-gram packet of Amul table butter now sells for ₹325, against ₹310 previously, and Nandini’s 200-gram paneer pack has risen to ₹115. Reduced milk availability has tightened supplies of milk fat, increasing the cost of butter, ghee and paneer. These price changes coincide with the October-to-March period, when milk consumption rises by 35–40%. Festivals during these months bring higher demand from households and institutional buyers.
September’s consumer food price index recorded inflation of 7.74%, compared with 5.97% previously. Milk carries an 18% weight in the basket. Higher milk-procurement expenses are prompting dairy companies and producers to transfer some of their additional costs to customers. Feed alone generally represents 60–70% of the expense of producing milk, and MMPA put the increase in feed costs at approximately 25% when announcing its price revision.
A weak monsoon, with deficient rainfall in major farming states, has affected crop yields. Industry estimates project maize production to fall by 15–16%. Maize represents 55–65% of cattle feed, but an increasing portion is being directed towards industrial ethanol production. The resulting pressure on feed supplies affects the productivity of dairy animals and constrains milk availability.
Transport is another source of higher operating expenses. Rising international crude-oil costs have increased domestic diesel prices, adding to the expense of tankers used to collect milk. Packaging, fuel and transportation are among the operating costs covered by the milk corporation’s allocation from Nandini’s price increase.
Of the additional ₹8 charged per litre of Nandini milk, ₹7 will go to dairy farmers and ₹1 to the milk corporation. Amul has also increased its fat-linked procurement rate to ₹1,000 per kilogram, according to ANI, enabling farmers to receive ₹60 for a litre of milk.
