Amul, Mother Dairy Milk Prices Hiked: Why Paneer, Ghee, Curd Could Get Costlier Next
Amul, Mother Dairy Milk Prices Hiked across India by ₹2/litre. Paneer, curd, butter and ghee prices may rise next.
Amul, Mother Dairy Milk Prices Hiked Across India: Rising Milk Costs May Soon Make Paneer, Ghee, Curd and Butter More Expensive
India’s dairy market has received another inflation shock as Amul and Mother Dairy announced a fresh milk price hike of ₹2 per litre across several variants. The revised rates came into effect from May 14, impacting millions of households already struggling with rising food expenses.
The latest decision by the country’s leading dairy brands is expected to create a ripple effect across the dairy industry. Experts believe that products like paneer, curd, butter, khoa, and ghee could soon become costlier as milk procurement and production expenses continue to rise.
According to reports, Amul stated that the increase was necessary due to higher operational costs, including cattle feed, transportation, packaging material, and fuel prices. The company also revealed that milk procurement prices paid to farmers have increased significantly over the past year.
Mother Dairy also confirmed that procurement costs have risen nearly 6% over the last year, making a price revision unavoidable. The company said the hike is only a partial pass-through of increased expenses and aims to maintain balance between farmer welfare and consumer affordability.
Which Milk Variants Have Become Costlier?
Both Amul and Mother Dairy have revised prices for major milk categories including:
- Full cream milk
- Toned milk
- Double toned milk
- Cow milk
- Buffalo milk
In Delhi-NCR, Mother Dairy’s full cream milk now costs ₹72 per litre, while toned milk has increased to ₹60 per litre. Similarly, Amul Gold and Amul Taaza have also become more expensive in several cities including Delhi, Mumbai, Kolkata, and Chennai.
Read more: PM Modi Cuts Down Convoy Size Amid Fuel Conservation Push
Why Paneer, Ghee and Curd Prices May Rise Next
Milk acts as the primary raw material for almost all dairy products. When liquid milk prices rise, manufacturers eventually pass the burden to consumers through higher prices of value-added products.
Products such as paneer, ghee, butter, curd, cheese, and sweets require large quantities of milk during production. For instance, producing one kilogram of paneer or ghee requires several litres of milk. As procurement costs rise, dairy companies may increase retail prices to protect profit margins.
Industry experts say ghee prices are particularly vulnerable because of higher fat content requirements. Similar trends were witnessed earlier when several dairy cooperatives increased prices due to rising input costs and lower milk supply during summer months.
What Is Driving Dairy Inflation?
Several factors are contributing to rising milk prices across India:
1. Expensive Cattle Feed
The cost of fodder and animal feed has increased sharply over the past year, making dairy farming more expensive.
2. Higher Transportation Costs
Fuel prices and logistics expenses continue to impact the dairy supply chain from villages to urban markets.
3. Summer Supply Pressure
Milk production often declines during peak summer months due to heat stress on cattle, reducing supply.
4. Farmer Procurement Rates
Major dairy cooperatives have increased payments to farmers to support milk production and rural incomes.
Impact on Household Budgets
For middle-class families, the latest milk price hike may significantly increase monthly kitchen expenses. Since milk is consumed daily in tea, coffee, breakfast, sweets, and cooking, even a ₹2 per litre increase can affect household budgets over time.
Read more: Prateek Yadav Dies At 38: Mulayam Singh Yadav’s Younger Son Passes Away in Lucknow
If paneer, curd, butter, and ghee prices also rise in the coming weeks, restaurants, sweet shops, and food businesses could face higher operating costs. This may further contribute to food inflation in urban areas.
Could Other Dairy Brands Follow?
Market analysts believe other regional dairy cooperatives and private milk brands may also revise prices soon. Historically, when large players like Amul and Mother Dairy raise prices, smaller dairy companies often follow due to similar procurement and operational pressures.
Consumers may therefore see a broader rise in dairy prices across India during the coming months.
Despite the hike, dairy companies maintain that the increase remains lower than overall food inflation and is necessary to ensure sustainable earnings for millions of milk producers.
We’re now on WhatsApp. Click to join.
Like this post?
Register at One World News to never miss out on videos, celeb interviews, and best reads.
