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At a time when the Government seems to have got a hold on prices of vegetables over and above sugar, edible oils and pulses, it is now milk that is threatening to burn a hole in consumer pockets.
Just three-and-half months after having raised prices by ₹2 a litre, Amul and Mother Dairy – the two large dairy players – have decided to effect yet another increase by the same quantum in the Delhi National Capital Region. The price hike will be effective February 1 and across all categories.
What is unusual about the latest hike is that it comes in the peak ‘flush’ winter period when more milk tends to flow from buffaloes’ udders. Production normally falls only when temperatures start rising and the animals go dry.
RS Sodhi, Managing Director of Gujarat Co-operative Milk Marketing Federation (GCMMF), which owns the Amul brand, attributed the latest price hike to the general inflation and rise in cost of production. “Farmers have to be paid more so that they are encouraged to produce more milk,” Sodhi said.
Amul has already effected price hike in Mumbai on January 24. “We will also increase the prices in other markets going forward,” Sodhi added.
In a statement, Mother Dairy said it was compelled to raise retail prices because of the ongoing rise in the prices of raw milk in the last few months coupled with the need to ensure availability of milk in the consumer market.
Sodhi said the flush season was progressing well and the average procurement by GCMMF unions was 160 lakh litres a day. “On a cumulative basis, our procurement is 6.5 per cent more this season than last year,” Sodhi added.
The smaller players in the NCR region are expected to follow suit.
“We will definitely increase the prices in the next 3-4 days,” said Sandeep Agarwal, Director of SMC Foods Ltd, which sells pouched milk under the Madhusudhan brand in Delhi market.
Following the decline in vegetable prices, food inflation had softened sequentially to 13.68 per cent in December from 19.9 per cent in November. But, February could be a different story.
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