Whalesbook
Rising Input Costs Drive Dairy Price Adjustments
The move by Amul and Mother Dairy follows a significant rise in operational expenses across the dairy sector. Amul, retailing under the Gujarat Cooperative Milk Marketing Federation, is increasing prices by up to Rs 4 per litre, attributing the hike to substantial cost increases in cattle feed, milk packaging film, and fuel over the past year.
Mother Dairy will raise its milk prices by Rs 2 per litre in the Delhi-NCR region starting May 14, 2026. The company cited a roughly 6% increase in milk procurement costs from farmers as the primary driver for its revision. This marks the first price adjustment for Mother Dairy's milk products since April 2025.
Balancing Farmer Interests and Consumer Budgets
Both dairy cooperatives emphasized their commitment to balancing the interests of farmers and consumers. Mother Dairy stated that 75-80% of its milk sales revenue is directly allocated to farmers and procurement costs. Amul noted that the current price increase translates to approximately 2.5-3.5% per litre, which they suggest is lower than average food inflation.
Consumer Impact and Inflationary Outlook
The price adjustments are expected to have a direct impact on household budgets, particularly for consumers in Delhi-NCR and across India where Amul products are prevalent. While the hikes are presented as necessary responses to rising input costs, they contribute to broader food inflation concerns. Consumers will need to factor these higher costs into their grocery expenses as prices take effect next week.