Milk dearer by Re 1

Consumers will now have to shell out more for milk, as Mother Dairy, the market leader in milk, has hiked the prices of all its milk varieties by Re 1 a litre with effect from today. Other players are also considering a similar price hike.

This is the third price hike by the company since February last year, when the prices were raised by Re 1 a litre, which was followed by a similar price hike in September.

"The hike in prices is due to the rise in the cost of raw milk and sharp increase in prices of milk products," a company statement said.

Mother Dairy's full cream milk would now sell at Rs 22, toned milk at Rs 18, double toned at Rs 16 and skimmed milk at Rs 14 a litre.

With the latest hike, rates of milk products such as cheese and curd are also likely to see a uptrend. Prices of skimmed milk powder (SMP) have already touched an all time high of Rs 120-125 a kg.

Param Dairy Products, which sells about 2 lakh litres milk daily under Param brand, is also planning an upward price revision by Re 1 a litre from February.

"The cost of procured milk has gone up from Rs 13 to Rs 19 a litre since last year, and companies Are left with no option but to increase the rates. This year, milk prices are high even in the winter, when production is adequate", said Brijesh Gupta, vice-president, Param Dairy Products. However, the price of ghee should remain stable at current rate of Rs 2150-2200 (for 15 kg tin).

Amrit Foods, which markets milk under the Gagan brand, is also looking to hike milk price by Re 1 a litre from February 1.