Mother Dairy hikes milk prices by Rs. 2/liter in Delhi-NCR
Mother Dairy is set to increase its milk prices by Rs. 2/liter in Delhi-National Capital Region (NCR) from Tuesday. The leading dairy player has cited input costs rising manifold for the price hike. After the increase, Mother Dairy's full-cream milk will cost Rs. 66 per liter, toned milk Rs. 53 per liter, and double-toned milk Rs. 47 per liter. Here's more to it.
Why does this story matter?
Mother Dairy reportedly raised milk prices for the fifth time this year and for the third consecutive month. It is one of the leading milk suppliers in Delhi-NCR, with volumes to the tune of 30,00,000 liters per day. Mother Dairy is owned by the National Dairy Development Board, a statutory body under the Union government's Ministry of Fisheries, Animal Husbandry, and Dairying.
Mother Dairy gives 75-80% of total price to milk producers
Mother Dairy said prices of its cow milk and token (bulk-vended) milk would remain unchanged. It said milk rates had to be raised to strike a balance between farmers and consumers. Mother Dairy gives milk producers around 75-80% of the total price paid by customers.
Passing increased input cost to consumers in phased manner: Company
Demand rose significantly, but not procurement
Calling it an "unprecedented year" for the dairy industry, Mother Dairy has said there has been a significant increase in milk demand from consumers and institutions. Contrary to expectations, however, the procurement of raw milk didn't rise even after Diwali. The raw milk procurement cost has increased by 24% as compared to last year due to input cost hikes and heatwave conditions, it added.
Previous milk price hikes by Mother Dairy this year
In November, the price of Mother Dairy's full-cream milk was increased by Rs. 1/liter and token milk by Rs. 2/liter. In October, the price of full-cream milk and cow milk was raised by Rs. 2/liter in Delhi-NCR and some other markets in North India. In August and March, too, prices of almost all Mother Dairy milk varieties were increased by Rs. 2 per liter.
