Vijaya Dairy and Sangam Dairy Raise Milk Prices Amid Cost Pressures
Vijaya Dairy, based in Vijayawada, and Sangam Dairy, headquartered in Guntur, have implemented a ₹2 per litre increase in their retail milk prices, effective fr om April 2026. This decision follows a rise in procurement costs for milk, with Vijaya Dairy increasing the price paid to farmers for buffalo milk at 10% fat from ₹82 to ₹85 per litre and cow milk from ₹29 to ₹31 per litre. Despite these procurement cost hikes, the retail price increase is limited to ₹2 per litre in an effort to mitigate the impact on consumers.
The revised retail prices for Vijaya Dairy's products are ₹56 per litre for low-fat milk, ₹60 for economy milk, ₹64 for premium milk, and ₹74 for full cream milk. Prices for mini packets, curd, and other milk products remain unchanged. Sangam Dairy has similarly adjusted its procurement grid, with buffalo milk fat rates now at ₹840 per kg in the Guntur district, while cow milk is procured at ₹310 per litre in this core milkshed.
Both cooperatives cite increases in procurement, packaging, and transportation costs as reasons for the price hike. The adjustment aligns with trends noticed in other Indian states, such as Madhya Pradesh, wh ere loose milk prices have recently risen by ₹2–4 per litre.
This synchronized action by the two largest dairy cooperatives in Andhra Pradesh highlights the cost pressures faced by the sector. These pressures are exacerbated by the summer lean season, which typically sees increased feed costs and decreased milk yields. The cooperatives' strategy aims to manage these challenges while maintaining competitive pricing against private sector players who source milk from neighboring states.
The broader implications for the Indian dairy market include potential pricing changes by private-sector companies, which may follow suit in response to the cooperative-led price adjustments. This trend is indicative of a nationwide recalibration of milk prices due to seasonal and structural cost factors.
Looking forward, cooperatives like Vijaya Dairy may increase their focus on value-added products to offset the impact of rising raw milk costs. These products, such as curd and flavored milk, generally offer better margins and are less affected by raw milk price fluctuations.
