Mother Dairy Hikes Milk Prices Across Key Markets Amid Rising Procurement Costs

Mother Dairy will up the price of its milk variants by as much as INR 2 per litre, effective April 30, 2025. The price hike will hit consumers in Delhi-NCR, Uttar Pradesh, Haryana, and Uttarakhand, the six states where the company has its largest markets. A company statement characterized the price increase as a necessary step to counteract sharply rising procurement costs, which the company says have shot up by INR 4 to INR 5 per litre to the dairy cooperative.  

The increase in price is a reflection of three things. First, the dairy supply chain has been challenged and is under stress. Second, the chain has experienced disruptions because of severe weather conditions in some parts of the country. And third, those conditions have caused a reduction in milk production and have pushed up the costs of milk and its ingredients.

New Rates Across Milk Variants

The new pricing structure sees the cost of bulk vended toned milk in the Delhi-NCR area move to INR 56 per litre, up from INR 54. Pouched full cream milk will now cost INR 69 per litre, only a slight bump up from the previous price of INR 68. Toned milk in pouches sees a price increase to INR 57 per litre from the previously lower price of INR 56. Double toned milk sees an even more substantial increase in price, jumping to INR 51 per litre (up from INR 49). Cow milk's price moves to INR 59 per litre, from the previous price of INR 57.

Balancing Consumer Interests and Farmer Support

Although the price increase is likely to affect household budgets, the company maintains that the adjustment is necessary to sustain its overall viability. They see it as a kind of tough love that, instead of pushing all the way for a price that recoups all our higher costs, aims at finding a balance between keeping milk affordable and making sure cattle owners are compensated well enough to stay in the business.

This pricing strategy indicates a continuous strain in the dairy sector between trying to keep prices down for the consumers and assuring "stable, workable prices for farmers and other suppliers." Even as dairy companies in India adjust upwards to cope with rising input costs, the sector also faces a demand crunch.

Outlook for Consumers and Industry

The latest price hike is just one in a series of cost increases affecting consumers in recent months. Yet, from an industry perspective, it may be essential to enact such moves if the supply chain is to be stabilized and if quality is to be maintained during some pretty adverse climate for the past few years.

Mother Dairy's announcement also comes against the backdrop of a broader surge in inflation, with various sectors, from auto to travel, upping prices in the early part of 2025. As we move further into summer, the dairy sector will be watched closely to see if further adjustments are made, depending on weather and procurement dynamics.