iconimg Wednesday, April 01, 2015

Press Trust Of India
New Delhi, January 31, 2014
Mother Dairy, the largest milk supplier in the Delhi-NCR region, will increase prices by Rs. 2 a litre across all variants with effect from tomorrow due to a rise in procurement costs. The price of full cream milk has been raised to Rs. 46 per litre from Rs. 44 and that of toned milk to Rs. 36 a litre from Rs. 34.

Double-toned milk will be available at Rs. 32 per litre and milk that is not sold in packets will cost Rs. 34 a litre from tomorrow.

In a statement, Mother Dairy said it was "compelled" to raise retail prices of all variants because of an increase in milk procurement prices in the past few months.

The company said the price increase will payment to farmers at remunerative rates and sustained availability of milk. It previously raised milk prices in the Delhi-NCR region in October 2013.

Mother Dairy said close to 80 per cent of the total sale proceeds goes into procurement of milk.

Higher milk prices could have an impact on food inflation and wholesale price index inflation, which stood at 13.68 per cent and 6.16 per cent, respectively, in December.

Mother Dairy sells about 30 lakh litres of milk a day in Delhi-NCR. Last week, the company had hiked milk prices by Rs. 2 a litre in Mumbai.

Mother Dairy also sells milk in cities such as Lucknow, Kanpur and Pune.