In a statement, Mother Dairy attributed the price hike to production costs, which it said have been on the rise for over a year.
It also said consumer prices were kept stable despite increasing costs of milk procurement over the last few months. The increase in farm prices is partially passed on to the consumers, affecting the MRP by 3-4%, Mother Dairy added.
“The increase of Rs 2 per litre translates to the range of 3-4% increase in MRP, which is much lower than the average food inflation,” said the Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets milk and milk products under Amul brand name.
In its annual report, the Reserve Bank of India said the increased prices in the food and beverages (F&B) category have been a major driver of India’s inflation in FY24. F&B’s contribution to the headline inflation was 60.3% in FY24, up from 46% a year ago.The RBI sees CPI inflation easing to 4.5% in 2024-25.Mother Dairy and Amul had last revised the prices of liquid milk in February 2023.
Due to the ongoing heat stress in the country, there could be further impact on milk production, Mother Dairy said. It added that 75-80% of its sales from milk are passed towards its procurement to ensure the sustenance of dairy farming.
GCMMF also said that almost 80 paise of every rupee paid by the consumers for milk and milk products is passed onto the milk producers.
