Mother Dairy has increased its milk prices up to Rs 2 per litre after rival Amul hiked the prices just four days ago. Effective from 25 May 2019, the price revision is costlier for the smaller SKU as the 1-litre packet will effectively see a hike of Rs 1 only while the price increase for 1 litre of two 500 ml pack will be Rs 2. This is in contrast to Amul which had kept the price increase smaller for small pack and large for the bigger packets.
Mother Dairy will not be increasing the prices of its token milk which is also known as Bulk Vended Milk (BVM). Also, the current revision is only for their poly pack milk variants.
Why the sudden rise?
Both Amul and Mother Dairy have attributed the price hike to the costlier milk procurement costs after the raw milk prices increased in last 3-4 months. This is “due to the increase in feed and fodder cost by 15-20% and labour cost etc,” Mother Dairy said in a statement, adding that the company had not passed on the higher price to customers in the previous months even though it was paying 7-8% high prices. The previous significant revision in milk prices was seen 2 years ago. The increase was hence long impending.
Previously, Amul MD RS Sodhi had said that the farmers are not incentivised to produce more milk, however, the consumption is on the rise. Amul also said that the company passes on the profits largely to its farmers, it being a cooperative. Mother Dairy also said that the company will support the dairy farmers and the increase was necessitated by keeping their remuneration in mind. “It is also pertinent to note that Mother Dairy passes close to 80% of the sales realization to the farmers,” Mother Dairy said.
What are the new prices?
For 500 ml packs– Mother Dairy’s 500 ml Full Cream variant will now retail at Rs 27 from the previous price of Rs 26. The Full Cream Premium variant will be sold at Rs 28, with a price increase of Rs 1. The toned milk will now be available for Rs 22 as opposed to the previous rate of Rs 21 and the double toned milk will now be sold for Rs 19. The Skimmed milk Dietz variant will cost Rs 21 and Cow Milk to cost Rs 22 per half a litre.
For 1000 ml packs– The Full Cream variant will retail at Rs 53 while the full cream premium variant will be sold at Rs 55. There is no revision in the cow milk prices in 1000 ml SKU. The toned milk will be available for Rs 42 while the double toned variant will be available for purchase at Rs 36.
The bulk vended milk will continue with its old price of Rs 40 per litre.