Starting November 12, Mother Dairy and Amul are increasing milk prices by Rs 2 to Rs 6 per liter. This decision follows rising procurement costs, cattle feed prices, and supply constraints affecting the dairy sector across the Delhi-NCR region.
Milk Price Hike Announcement
Consumers will have to pay more for milk as leading dairy brands Mother Dairy and Amul are set to increase prices by Rs 2 to Rs 6 per liter from November 12, amid tightening milk supplies and rising procurement costs. According to industry sources, the price revision will vary across different milk categories, with toned milk becoming costlier by Rs 2 per liter, full cream milk by Rs 4 per liter and full cream buffalo milk by Rs 6 per liter.
Detailed Price Revisions in Delhi-NCR
In the Delhi-NCR region, the price of toned milk supplied through bulk vending machines is set to increase from Rs 58 to Rs 60 per liter. The price of full cream packaged milk will rise from Rs 72 to Rs 76 per liter, while packaged toned milk will become costlier from Rs 60 to Rs 62 per liter. The price of buffalo full cream milk, containing 6.5 per cent fat, will increase from Rs 80 to Rs 86 per liter. Mother Dairy will also increase the price of double-toned milk from Rs 54 to Rs 56 per liter, while cow milk will cost Rs 65 per litre, up from Rs 62.
Factors Driving the Price Increase
The latest increase comes at a time when milk prices generally remain relatively stable during the flush season, a period when milk production and availability typically improve. However, the current situation indicates growing supply constraints in the dairy sector. The shortage of milk has also pushed up the prices of milk fat by around 20 to 25 per cent over the past few months, adding to the overall cost of dairy production
Rising cattle feed prices have further increased the financial burden on dairy farmers, prompting dairy companies to raise procurement prices to encourage higher milk production and improve collection levels. Sources said, Amul has increased the procurement rate linked to milk fat to Rs 1,000 per kilogram, enabling farmers to receive more than Rs 60 per liter for milk.
The supply situation has also raised concerns over the productivity of milch animals. A decline in milk availability has affected the availability of milk fat, making it more expensive for dairy companies to maintain supplies. Dairy companies generally use a combination of milk powder and milk fat to prepare liquid milk when fresh milk procurement falls short. However, the sharp increase in fat prices has made this alternative more expensive, adding to the pressure on companies to revise consumer prices.
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