Milk price: Will Mother Dairy follow Amul and hike prices?

• Follow

Amul, India’s largest milk brand owned by the GCMMF, has increased its milk prices across India by up to Rs 2 per litre, effective Thursday, according to media reports.

Now, one litre of Amul Gold costs Rs 55, up from Rs 53 a litre (See the table below for the new prices of three major Amul brand milk).

The price rise in the Amul milk brand comes at a time when consumers are faced with ever-increasing prices of petrol and diesel, and edible oil and pulses.

Amul has raised the milk prices for the first time in over one-and-a-half years. The previous price hike came in December 2019. The decision to hike prices this year was taken for the benefit of farmers, according to the Gujarat Cooperative Milk Marketing Federations (GCMMF). It attributed the latest hike to a rise in input costs.

Mother Dairy, the second-largest dairy brand in India, had hiked its milk prices in December 2019, but only for the areas of Delhi/NCR. With input costs rising, Mother Dairy is expected to follow the step of Amul and increase prices of its milk brands in other States as well.

Mother Dairy charges Rs 55 for 1 litre of its full-cream milk, Rs 45 for a litre of toned milk, and Rs 47 for a litre of its popular cow milk. Rates slightly differ for the 500 ml packs of the same product.

International brands Nestlé and Danone are also available in Indian market, but in 1 litre cartons of Tetrapacks. While Danone is not commonly available , individuals can find Nestlé’s a+ milk at vendors across the country. The company sells its Nourish Toned Milk for Rs. 85 a litre and its Slim Skimmed Milk for Rs. 89 a litre.

Milk is not the only food item that is costlier now. The latest data from the Consumer Price Index – IW (CPI-IW), which measures the prices of several food commodities and essential items, saw a jump of 0.5 per cent for the month of May. Inflation due to upward pressure on essential food items and fuel is expected to result in further rise in retail inflation.

While Amul’s upward revision of prices is effective from today, other regional cooperatives and brands may soon follow suit.