Mother Dairy set to raise milk prices by Rs 2
Mother Dairy is planning to increase the price of milk by Rs 2 in the next four to eight weeks, the company said.
Citing the increase in production cost, the dairy major said it is assessing the situation, and is likely to increase the prices after a gap of two years.
“We are facing tremendous pricing pressure. We will watch the situation for another four to eight weeks and may increase the price to match up the competition, probably by Rs 2 per litre,” Siva Nagarajan, managing director, Mother Dairy told HT.
Mother dairy sells around 30 lakh liters of milk per day.
Dairy major Amul had hiked its milk prices by Rs 1 in the Delhi-NCR region during the first week of June. “We have decided to increase the milk prices in Delhi-NCR region by Re 1 per pouch of both half litre and one litre , as procurement prices have increased by 19-20% in the last two years,” RS Sodhi, managing director, Amul had said earlier.
Amul’s toned one-litre polypack, which was priced at Rs 38, now costs Rs 39, while the half-litre pack, which costs Rs 19, now cost Rs 20. Amul sells around 30 lakh litres of milk in Delhi NCR every day, accounting for about 40% of the pouched milk sales in the region.
At present, Mother Dairy’s one litre toned milk is Rs 38, and full cream milk costs Rs 48 a litre.
The company’s estimated average milk procurement stands in the range of 180 lakh litres per day (LLPD), which is down by 35 LLPD, or 16% from the peak procurement of 215 LLPD in early January.