Milk costlier by Re 1 a litre in Delhi-NCR

Last Updated: Saturday, December 18, 2010 - 21:28

New Delhi: 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 Rs 25/litre and double
toned 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 at Delhi, 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).

PTI



First Published: Saturday, December 18, 2010 - 21:28

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