After Amul, Mother Dairy increases milk prices by ₹2/liter
What's the story
Mother Dairy, a major milk supplier in the Delhi-NCR region, announced a ₹2 per liter increase in milk prices on Monday.
The company attributed this hike to rising input costs over the past 15 months.
Effective from June 3, the new prices apply to all milk variants across Delhi-NCR and other markets where Mother Dairy operates.
This follows a similar price increase by Amul on Sunday.
Price justification
Revised milk prices to compensate producers for increased costs
In a statement, Mother Dairy said, "Increasing liquid milk prices by ₹2 per liter across all operating markets from June 3, 2024 onwards."
The company explained that this increase in consumer price is primarily to compensate producers for increased production costs.
The last revision of liquid milk prices was in February 2023, despite higher procurement costs over recent months.
Price details
New prices for different milk variants announced
The revised prices for various milk variants in Delhi-NCR are as follows: full cream milk will now cost ₹68 per liter, toned and double-toned milk at ₹56 and ₹50 per liter respectively, buffalo and cow milk at ₹72 and ₹58 per liter, respectively, and token milk (bulk vended milk) will be sold at ₹54 per liter.
Mother Dairy sells approximately 35 lakh liters of fresh milk daily in the Delhi-NCR region.
Business model
Mother Dairy's approach to sustaining dairy farming
Mother Dairy emphasized that it directs an average of 75-80% of the sales revenue from milk toward its procurement.
This strategy ensures the sustainability of dairy farming and the availability of quality milk.
"The surge in farm prices is only being partially passed on to the consumers, with an effective revision of 3-4%, thereby securing the interests of both the milk producers and the consumers," stated Mother Dairy.