Amul and Mother Dairy to Increase Milk Prices by Rs 2-6 Per Litre Starting November 12

Major dairy brands Amul and Mother Dairy are set to increase milk prices by Rs 2 to Rs 6 per litre starting November 12. The price revision is being implemented amid tightening milk supplies and rising procurement costs across the sector.

According to industry sources, the price adjustment varies across different categories of milk. Toned milk is set to become costlier by Rs 2 per litre, full cream milk by Rs 4 per litre, and full cream buffalo milk by Rs 6 per litre.

In the Delhi-NCR region, specific regional revisions show the price of toned milk supplied through bulk vending machines increasing from Rs 58 to Rs 60 per litre. Packaged full cream milk prices will rise from Rs 72 to Rs 76 per litre, while packaged toned milk will go up from Rs 60 to Rs 62 per litre. Buffalo full cream milk, which contains 6.5 per cent fat, will see an increase from Rs 80 to Rs 86 per litre. Additionally, Mother Dairy is raising the price of double-toned milk from Rs 54 to Rs 56 per litre, and cow milk will cost Rs 65 per litre, up from Rs 62.

This price hike occurs during a period when milk prices typically remain relatively stable due to the flush season, a time when milk production and availability usually improve. However, current trends point to underlying supply constraints within the dairy sector.

Supply shortages have driven up the prices of milk fat by approximately 20 to 25 per cent over the past few months, adding to overall production costs. Furthermore, rising cattle feed prices have increased the financial burden on dairy farmers. In response, dairy companies have raised procurement prices to encourage higher milk production and improve collection levels.

Sources indicate that Amul has increased the procurement rate linked to milk fat to Rs 1,000 per kilogram, enabling farmers to receive over Rs 60 per litre for milk. Concerns over the productivity of milch animals and a decline in fresh milk availability have limited the supply of milk fat, forcing companies to face higher expenses to maintain operations.

When fresh milk procurement falls short, dairy companies typically rely on a combination of milk powder and milk fat to prepare liquid milk. The recent sharp increase in fat prices has made this alternative more expensive, compounding the financial pressure on companies and leading to the revised consumer prices.

"The decision by major dairy brands like Amul and Mother Dairy to raise consumer prices highlights the direct impact of input cost pressures, such as rising cattle feed expenses and higher procurement rates for farmers. In the business and agricultural sectors, managing supply chain constraints and fluctuating raw material costs remains a critical challenge. When operational expenses rise upstream, pass-through pricing often becomes necessary to sustain farmer livelihoods and maintain long-term market stability." — Dr. Shishir Gupta, Founder & CEO, StartupLanes