Mother Dairy will increase milk prices by Rs 2 per litre in Delhi-NCR with effect from Sunday due to rise in procurement costs. The announcement comes within days after Amul and Parag Milk Foods increased prices by Rs 2 per litre each.

"In view of the rising procurement prices (amount paid to farmers), fuel costs and costs of packaging material, Mother Dairy is compelled to raise its liquid milk prices by Rs 2/litre in Delhi NCR with effect from March 6, 2022," the company said on Saturday.

Full cream milk will cost Rs 59 per litre from Sunday, up from Rs 57 per litre on Saturday. Prices of toned milk will increase to Rs 49, while double toned milk will rise to Rs 43 per litre. Cow milk prices have been hiked to Rs 51 per litre from Rs 49 per litre. Bulk vended milk (token milk) price has been raised to Rs 46 from Rs 44 per litre.

It has also raised milk prices by Rs 2 per litre in Haryana, Western Uttar Pradesh and Uttarakhand. Markets beyond these select regions will be revised in a phased manner. Mother Dairy Milk is available in over 100 cities across the country. "The company has been experiencing a surge in varied input costs which have increased multifold," it said.

The procurement prices (amount paid to farmers) have alone firmed up by about 8-9 per cent since July 2021. The other costs have also gone up. "The surge in farm prices is only being partially passed on to the consumers, with an effective revision of only 4 per cent, which is lower than the increase witnessed in the farm prices and overall food inflation, thereby securing the interests of both the stakeholders," Mother Dairy said.

Mother Dairy said it passes around 75-80 per cent of the sales realization from milk towards the procurement of milk. "As a responsible organization, Mother Dairy has consistently worked towards providing remunerative prices to milk producers, thereby ensuring the sustainability of dairying and availability of quality milk," the company said.

Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets milk and milk products under the Amul brand, announced a hike in milk prices by Rs 2 per litre from March 1. Dairy firm Parag Milk Foods Ltd has also raised the price of the Gowardhan brand of cow milk by Rs 2 per litre with effect from March 1. GCMMF sells 150 lakh litres of milk per day, out of which Delhi-NCR accounts for around 37 lakh litres per day.

In Delhi-NCR, Mother Dairy sells more than 30 lakh litres per day in poly packs and vending machines.