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Milk price hikes hit food businesses
As milk prices rise across the country, stakeholders are juggling cost cuts, smaller margins and gradual price hikes. Here's what they have to say.
As milk becomes costlier, its impact is likely to extend beyond household consumption. Dairy giants Amul and Mother Dairy have raised prices by ₹2 per litre across popular variants from May 14. This is the first hike of Amul since its previous revision came on May 1 last year, while Mother Dairy last increased prices in April 2025. The brands have pointed this hike in price to rising input costs such as cattle feed, packaging and overall production.
Literally a cut-ting chai?
At the ground level, the immediate concern is survival without losing customers. “For now, I won’t increase prices because my customers are mostly working labourers and house helps in nearby societies. They are very price-sensitive. But if milk sourcing becomes difficult for me or I can't cover the cost from profits, I’ll have no choice but to reduce the quantity per cup rather than hike prices immediately," says Pradeep Pandey, a tea vendor in Vasant Kunj, Delhi.
Dessert outlets felt the pinch early
Mohd Faheem of Uncle Shake in Delhi shares, “We have to boil the milk first before preparing shakes, so the high LPG prices were already hitting us hard. Now, this milk price hike is another blow. I increased my prices by ₹10 recently, but I can't keep asking customers for more money every time. While costs keep going up, my actual take-home income stays exactly the same as my overheads just keep climbing.”
For niche dessert players, however, the pressure is already building, even if not directly through milk. Ushra Shah, founder of Mumbai-based Moussestruck - a customizable mousse bar - says, "We don’t work with milk directly, but cream is a core ingredient for us. Cream prices have already gone up, and that has directly impacted our production costs. As a result, we’ve had to increase prices.”
Could it move to other alternatives?
Mumbai-based restaurant owner Kapil Shankar shares, “We can’t just swap dairy for oat, almond or soy milk in our kitchen. It’s too expensive and would change the taste of our signature dishes. . Even though these costs us more, customers know that we charge a premium for it, which actually helps our margins.”
A shift in sourcing and chances of adulteration?
Narendra Singh, executive chef at The Roseate, New Delhi explains how prolonged cost pressure can also lead to shifts in sourcing. He says, “With the rise in milk prices, the prices of milk-based products might also increase. This can lead to local restaurants switching to more economical ingredients. There might also be risks around quality, including a high chance of adulteration in products like paneer.”
(With inputs from Sanchita Kalra)
