Summer is here and it is very likely that you will be tempted to buy a scoop from the neighbourhood ice-cream parlour. But be prepared to pay more than what you were paying till now.
Summer is here and it is very likely that you will be tempted to buy a scoop from the neighbourhood ice-cream parlour. But be prepared to pay more than what you were paying till now.
Manufactures of branded ice-creams have either increased the prices or are going to increase them, thanks to the hike in milk prices in last one year.
For example, a branded chocobar candy which cost Rs5 is now costlier by Re1. In Ahmedabad, there are three big ice cream manufacturers — Amul, Vadilal and Havmor, and each of them has felt the pressure of milk prices which went up by more than 20% in last one year.
Amul, which has around 40% of share in ice cream market in the country, has already increased the ice cream prices. “We have already increased ice cream prices by up to 12%. In last one year, the prices of milk, which is the biggest raw material for ice cream, have gone up by more than 20%. So, due to rise in input cost, we decided to increase the ice cream prices,” said managing director of Gujarat Co-operative Milk Marketing Federation (GCMMF), RS Sodhi. GCMMF markets Amul brand of products.
In last one year, the milk prices have gone up from around Rs26 per litre to more than Rs32 per litre, up by 23%. “The rising milk cost is the big factor because of which we have decided to increase the ice cream prices. Vadilal has decided to raise the ice cream rates by around 8% this summer compared to last year,” said managing director of Vadilal Ltd, Rajesh Gandhi. According to Gandhi, rise in the input costs make ice cream manufacturers increase the prices.
"We collect milk from cattle farmers and in last one year, their procurement cost has gone up by up to 35%. So the increase in input costs is passed on to the consumer," he said. In case of Havmor, the company has increased the prices of all categories and flavours except the vanilla flavour.
"Vanilla flavour is highly popular and in demand. So we have not increased its prices. But in case of chocobar, which was sold at Rs5 till last year, is up by Re1 to Rs6 this summer. Similarly, in many other ice cream flavours, we have increased its prices ranging from 5% to 7%," said its managing director Pradeep Chona.
Though the organised players have increased the ice cream prices, the unorganised manufactures will not, believes Chona.
"The unorganised sector, which is making unhygienic ice cream, will take advantage by not increasing ice cream prices. On other side, they also do not pay any kind of taxes and so they can afford keeping the ice cream cost low," he said.
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