Mother Dairy, a leading dairy player in the Delhi-National Capital Region (NCR), is set to increase its milk prices by INR 2 per liter starting Tuesday. This marks the fifth price hike by Mother Dairy this year and the third consecutive month of price increases.
The company cites rising input costs as the main reason for the price hike. After the increase, the prices of full-cream milk, toned milk, and double-toned milk will be INR 66, INR 53, and INR 47 per liter, respectively. However, the prices of cow milk and token (bulk-vended) milk will remain unchanged.
Mother Dairy, which is owned by the National Dairy Development Board, supplies about 30,00,000 liters of milk per day in the Delhi-NCR area. In a statement, the company stated that milk rates had to be increased in order to strike a balance between farmers and consumers, and explained that it gives milk producers around 75-80% of the total price paid by customers.
The company also highlighted that there has been a significant increase in milk demand from consumers and institutions, but that raw milk procurement has not risen even after the Diwali holiday due to input cost hikes and heatwave conditions, leading to a 24% increase in raw milk procurement costs compared to last year.
Apart from the price hike, Mother Dairy has also implemented several measures to improve the quality and supply of milk in the region. These include strengthening its procurement and distribution network, modernizing its processing and packaging facilities, and introducing new milk products such as flavored milk and lassi. The company has also implemented various initiatives to support the dairy farming community, such as providing access to high quality animal feed, artificial insemination services and training programs for farmers.
Despite the price hike, Mother Dairy continues to be a popular choice among consumers in the Delhi-NCR region due to its consistent quality and wide range of products. The company has a strong distribution network, with a presence in over 2,000 outlets and a fleet of over 600 milk vending booths. It also has a strong brand presence, under which many popular products like butter, ghee and ice-creams.
While the price hike may be a burden for some consumers, it is important to note that the dairy industry is facing several challenges due to the COVID-19 pandemic and other factors. These include rising input costs, supply chain disruptions and changes in consumer behaviour. In this context, it is important for companies like Mother Dairy to strike a balance between the needs of farmers and consumers and ensure that the quality and supply of milk is maintained.
