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Milk gets dearer by Re1 per litre in Delhi

Delhiites will have to dole out Re1 more for a litre of milk, as the region's biggest supplier Mother Dairy raised milk prices from today in Delhi and the adjoining areas to offset its increased procurement costs.

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Delhiites will have to dole out Re1 more for a litre of milk, as the region's biggest supplier Mother Dairy raised milk prices from today in Delhi and the adjoining areas to offset its increased procurement costs.

"Producer price (procurement cost)for milk has increased, as a result of which Mother Dairy is compelled to revise milk prices (by Re1 a litre across variants) in the Delhi National Capital Region (NCR) effective from December 19, 2010," Mother Dairy Fruit & Vegetables has said in a statement.

With the hike, the revised price of one litre full cream milk (poly pack) now stands at Rs33 per litre, toned milk Rs25/litre and double toned Rs22/litre. The rate of toned bulk vended milk (token milk) will be Rs24 a litre.

"Over the past two years, milk procurement costs have increased significantly, as costs of all major inputs for milk production have increased. Other input costs like packaging material and transportation have also increased," a Mother Dairy spokesperson said.

Mother Dairy has been the market leader in the branded milk segment for over 35 years and sells more than 27 lakh litres per day in Delhi.

Another major supplier in the region, Gujarat Cooperative Milk Marketing Federation, which sells milk under the 'Amul' brand, said that it would also take a call on prices of full cream milk in a couple of days.

"Our prices are already higher by Rs 1 per litre in case of toned and double toned milk. So, it will be at par with Mother Dairy prices in these two variants," Amul's managing director RS Sodhi said.

Mother Dairy said that though it has been revising prices over the past two years to counter the increasing costs, the rise in MRP (maximum retail price) has not been adequate to cover the rise in cost of milk production.

"In order to partially recover the above costs and sustain operations for the rest of the year, Mother Dairy is forced to revise the price of some of the milk variants," the spokesperson added.

Mother Dairy (Delhi) was set up in 1974 under the Operation Flood Programme. It is a wholly-owned company of the National Dairy Development Board (NDDB).

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