Get ready for costlier ice creams this summer

Players have already raised prices in the range of 5-8%

Get ready to shell out more for ice cream, your favourite summer dessert, as makers have already raised prices in the range of 5-8 per cent. 

Input costs for ice creams have gone up considerably in the last one year: skimmed milk powder prices have moved from Rs 140 a kg last year around the same time to over Rs 240 a kg now. Besides, prices of sugar, another key ingredient in ice creams, too, have risen by around 30-40 per cent, and milk fat prices have grown by around 35 per cent, say companies. 

The country’s largest player in terms of market share, Gujarat Cooperative Milk Marketing Federation (GCMMF), which sells Amul ice creams, has increased prices by 5-8 per cent this month. Confirming the development, R S Sodhi, managing director of GCMMF, said that input costs have risen and hence they have raised prices by 5-8 per cent. He, however, added that the season as such is expected to be good and Amul is ready with a 650,000 litres per day (lpd) capacity for the summer season. 

“We have added new capacities and our overall ice cream processing capacity has risen by 30 per cent compared to last year. Now, we have new greenfield capacities at Rohtak, Lucknow and Nagpur and Surat. Overall installed capacity stands at 650,000 lpd from 15 plants nationally,” Sodhi said, adding that during peak season the facilities usually run at full capacity. 

Another leading player Gujarat-based, Vadilal Industries, has raised prices by 6-8 per cent as well. This is higher compared to the price rise last year that was in the range of 2-3 per cent. “Prices of milk solids and sugar, the main two ingredients are up considerably this season. Overall cost of production is up by 5-6 per cent on an average,” explained Rajesh Gandhi, managing director of Vadilal, which does around Rs 600 crore of sales every year. 

Mother Dairy, too, has increased its ice cream prices in the range of 5 per cent. 

Overall, the industry expects the season to be good and is hoping for a 15 per cent volume growth on a year-on-year basis. Gandhi said that this year the industry is expected to grow by 15-20 per cent in terms of volumes —this is higher compared to last year’s 10-15 per cent growth rate. This is mainly down to new capacities coming onstream.