Mother Dairy, a wholly owned subsidiary of the National Dairy Development Board, has increased prices of branded milk by 4%, the first hike in a year. The hike will come into effect from Saturday.
Mother Dairy officials attributed the price hike to a rise in power tariff, poly film cost, diesel cost and rising milk procurement prices.
"The last price increase was in September 2011. We are compelled to raise prices marginally in order to balance the need of the dairy farmers and the consumers," said a Mother Dairy spokesperson.
The company's full cream milk brand will cost R39 a litre, up from R37, while toned (fat trimmed) milk variety will cost R30, up R1.
The company, which sells more than 300,000 litres per day at Delhi, is a market leader. Currently, Mother Dairy milk is priced lower than its nearest competition and even after latest round of price increase, Mother Dairy milk will continue to be lower by R1 a litre than its nearest competition in the full cream milk variant.
“Prices of essential commodities are rising every day. How are we supposed to meet our daily needs within our limited budget,” said Savitri Devi, a housewife from south Delhi’s Kailash Colony.