Milk will be dearer in the Delhi-NCR by Re 1 per litre starting from tomorrow as Mother Dairy, the biggest supplier in the region, on Saturday announced a hike in rates. "The producer price for milk has increased, as a result of which Mother Dairy is compelled to revise milk prices (by Re 1 a litre across variants) in the Delhi National Capital Region (NCR) effectively from December 19, 2010," Mother Dairy Fruit & Vegetable Ltd, said in a statement.
The revised price of one litre full cream milk (poly pack) is Rs 33 per litre, toned milk at Rs 25/litre and double toned at Rs 22/litre. The rate of toned bulk vended milk (token milk) will be Rs 24 a litre.
"Over the past two years, milk producers prices (procurement costs) have increased significantly. This has happened 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. Another major supplier, Gujarat Cooperative Milk Marketing Federation's -- which sells milk under the Amul brand -- Managing Director R S Sodhi said, "We will take a call on prices of full cream milk in the couple of days." "Our prices are already higher by Re 1 per liter in case of toned and double toned milk. So, it will be at par with Mother Dairy prices in these two variants," Sodhi said.
Mother Dairy said that although it has been making price corrections over the past two years to counter the increasing costs, the increase in MRP 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 has been the market leader in the branded milk segment for over 35 years and sells more than 27 lakh liters per day in Delhi alone, the release said. 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).