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Mother Dairy not to raise milk prices in August; review costs

Last Updated: Sunday, August 5, 2012 - 13:22

New Delhi: Amid concern over availability of fodder owing to poor monsoon, Mother Dairy -- the largest milk supplier in the national capital region -- Sunday said it will not increase milk prices for another one month and would review situation in September after assessing all input costs.

"We increased milk prices in September last year. We have managed to hold the prices for the last 11 months. We will review all input costs in early September and will hold consumer prices for another one month," Mother Dairy Managing Director S Nagarajan said, when asked about whether it plans to increase prices due to fodder scarcity.

Fodder availability has been hit as half of the country has received deficient/scanty rainfall so far this year. Karnataka, Maharashtra, Rajasthan and Gujarat have been affected severely and are facing drought-like situation.

Shortage of feed and fodder for livestock has put upward pressure on its prices, which may affect the profit margin of milk companies.

Last week, the government removed import duty on oil cakes to boost domestic supply of animal feed and allocated Rs 50 crore to enhance fodder production, as part of its measures to mitigate adverse impact of deficient monsoon on crops, livestock and drinking water supply.

Mother Dairy is currently selling full cream milk at Rs 37 per litre and toned milk at Rs 29 per litre. Its price are lower than Amul, which sells full cream at Rs 40 a litre and toned milk at Rs 30 in the national capital.

In April this year, Amul had raised milk prices in all the categories, but Mother Dairy decided to absorb rise in input costs.

Mother Dairy supplies about 30 lakh litres of milk (both loose and poly packed) per day in Delhi and the NCR, which consumes around 115 lakh litres milk a day, including loose milk through vending machines.

Set up in 1974, Mother Dairy is a wholly-owned subsidiary of National Dairy Development Board (NDDB) of India. It collects milk daily from farmers of Punjab, Uttar Pradesh, Maharashtra, Karnataka and Rajasthan.

India is the largest milk producer globally, with an output of over 121 million tonnes annually.


First Published: Sunday, August 5, 2012 - 13:22
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