Mother Dairy Ups Milk Prices by ₹2 Per Litre, Citing Soaring Procurement Costs

Price Hike Hits Households
Mother Dairy, a leading dairy brand in India, implemented a ₹2 per litre price increase across its milk variants, impacting millions of consumers. The hike, affecting products like full cream (now ₹73 per litre) and toned milk (₹61 per litre), comes as households grapple with rising living costs. This adjustment, also mirrored by competitors like Amul, marks the second price revision in 2025, driven by escalating operational challenges.

Heatwave and Procurement Woes
Mother Dairy attributed the price surge to a sharp rise in procurement costs, exacerbated by a prolonged heatwave. The extreme weather has reduced milk yields, with fodder prices soaring 20-25% due to drought-like conditions in key dairy states. Labor costs have also spiked, with milking and transportation expenses up by 15%. The company noted a 10% drop in milk collection since March, forcing reliance on costlier suppliers to meet urban demand.

महंगाई: कल की चाय महंगी होगी
- मदर डेयरी ने बढ़ाए दूध के दाम
- कीमतों में ₹2/ लीटर तक बढ़ोतरी
- नई कीमतें बुधवार सुबह से लागू होंगी
- उम्मीद है जल्द अन्य कंपनियां भी फॉलो करें #Milk #MotherDairy #PriceHike@ZeeBusiness @MotherDairyMilk pic.twitter.com/sxJ2tp87FM

— Ambarish Pandey (@pandeyambarish) April 29, 2025

Impact on Consumers and Farmers
The price hike has sparked mixed reactions. Urban consumers, already hit by inflation, face added strain, with a family of four now spending ₹120-150 more monthly on milk. Rural dairy farmers, however, may benefit, as Mother Dairy plans to pass on a portion of the increase to producers to offset their rising costs. This could stabilize supply chains, but analysts warn of potential demand dips if prices climb.

Industry-Wide Trend

Mother Dairy’s move reflects a broader trend in India’s ₹1.5 lakh crore dairy sector, with brands like Parag Milk Foods also raising prices. As summer pressures persist, experts predict further adjustments unless monsoon relief boosts production. Consumers now brace for tighter budgets, while the industry navigates this challenging landscape.