Mother Dairy Hikes Milk Prices in Delhi NCR

Mother Dairy, the leading milk supplier of the country, has increased the milk prices in Delhi-NCR and other cities by Rs 2 per litre with effect from Sunday due to higher input costs. Earlier, the milk prices were raised in December 2019. Apart from this Amul had hiked its milk prices from July 1 by Rs 2 per litre.

Mother Dairy said in a statement that "it is compelled to raise its liquid milk prices by Rs 2/litre in Delhi-NCR with effect from July 11, 2021.” The new prices will be applicable to all milk variants.

“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 statement said. In the last one year, farm prices have increased to 8-10 per cent coupled with mounting operational costs of processing, packaging and logistics.

In addition, Mother Dairy said, “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." More than 30 lakh litres of milk per day is sold by Mother Dairy in Delhi-NCR. 

“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's statement said.

The dairy company stated in the statement, “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.”