Milk Prices

Dairy companies are likely to witness 11-13 per cent revenue growth this financial year on strong demand, increasing share of value-added products (VAP) and higher milk prices, a report said on Monday. The profitability will improve by 20-30 basis points (bps), aided by better realisations, healthy milk supply keeping procurement prices in check and a favourable shift towards VAP, which fetches higher margins, Crisil Ratings said in a report. The rating agency further stated that to capitalise on the healthy growth momentum, companies will ramp up capital expenditure (capex) by 10 per cent this fiscal. A sizable portion of this capex will be to enhance capacities for VAP, a segment that continues to outpace the traditional liquid milk category, it added. Despite the higher capex, credit profiles of dairy companies are expected to remain stable because of improving cash flows and strong balance sheets, the report said. "The VAP segment is expected to clock a strong 16-18 per cent .

This is a 3-4 per cent increase in MRP, which the co-operative said is much lower than the average food inflation

Prices of Amul milk across all variants in the country will be raised by Rs 2 per litre with effect from May 1 (Thursday), the marketing federation which owns the popular dairy brand announced on Wednesday. The increase of Rs 2 per litre translates into a range of 3-4 per cent hike in MRP (maximum retail price) which is much lower than average food inflation, the Gujarat Cooperative Milk Marketing Federation (GCMMF) said in a release. The Anand, Gujarat based federation markets dairy products under the 'Amul' brand. Following the increase, 500ml pouch of Amul Gold milk will now be available for Rs 34, while 'Shakti' variant of 500ml will cost Rs 31 in Gujarat, said the release.

Mother Dairy has hiked milk prices by up to Rs 2 per litre effective Wednesday to partly offset rising input costs. The price revision will be effective from April 30, 2025 across its market, a company official said on Tuesday. "This price revision has been necessitated to address the significant increase in procurement costs, which have gone up by Rs 4-5 per litre over the past few months," the Mother Dairy official said. The surge in procurement prices is primarily driven by early onset of summer and heatwave conditions, the official said. Mother Dairy sells around 35 lakh litre of milk per day in the Delhi-NCR market through its own outlets, general trade and e-commerce platforms. "We remain committed to ensuring the consistent availability of quality milk to consumers while supporting the livelihoods of our farmers," he said. This revision represents only a partial pass-through of the increased costs, aiming to equitably serve the interests of both farmers and consumers, the

FMCG major flags firming of milk, cocoa and coffee prices

It also plans to expand its footprint this year to 350,000 stores from 250,000 currently, including deeper growth in existing markets such as Chennai

Summer is usually when liquid milk supplies go down and the reliance on skimmed milk powder (SMP) stocks increases; however, lower production during winters mean SMP may also be in short supply

Milk prices in Karnataka will increase by Rs 4 per litre starting from April 1, said state Cooperation Minister K N Rajanna on Thursday. The Minister said the price increase comes in response to the pressure from milk federations and farmers. Addressing reporters here, he said, "The decision to hike the prices is by the milk federation, they were asking for Rs 5 hike per litre, the government agreed and decided for Rs 4 hike from April 1. The entire Rs 4 that has been hiked should go to farmers..." The milk price revision comes in the wake of hikes in bus and metro fares, as well as power tariffs. Earlier, Karnataka Milk Federation (KMF) chairman Bheema Naik too had hinted at the possibility of a hike in the milk prices. Karnataka Milk Federation (KMF) markets its dairy products under the 'Nandini' brand. In 2024, the KMF had hiked the milk price by Rs 2 per packet and increased the quantity per packet by 50ml, KMF has been maintaining that the price increase in 2024 was not a hi

The price cut comes as Gujarat's dairies experience a milk surplus, and several GCMMF unions have lowered milk procurement prices from farmers

Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets dairy products under the Amul brand, has reduced milk prices by Rs 1 per litre across India. However, the reduction in prices is only for one-litre packs. "We have reduced the prices of one-litre packs by Rs 1 per litre across India," GCMMF managing director Jayen Mehta told PTI. "This is to encourage consumers to buy larger packs of milk and get incentive for the same," he said. In Delhi, the rate of Amul Gold milk has been reduced to Rs 67 from Rs 68 per litre while price of Amul Taaza will now be Rs 55 from Rs 56 per litre earlier. GCMMF's turnover increased 8 per cent to Rs 59,445 crore in the 2023-24 financial year. Mehta had earlier said that the cooperative is expecting double-digit growth in revenue during this fiscal on strong demand. GCMMF handled 310 lakh litres of milk per day on average during the last fiscal. It has a total annual milk processing capacity of around 500 lakh litres. GCMMF is the w

The growth rate in milk production was 6.62 per cent in 2017-18; 6.47 per cent in FY19; 5.69 per cent in FY20; 5.81 per cent in FY21; and 5.77 per cent in FY22

The slowdown in the rate of growth of milk production from a healthy 5-6 per cent just a few years back has caused some concern within a section of the industry who want deeper analysis of the problem

India's milk production rose 4 per cent to 239.30 million tonnes in 2023-24, Union Minister of Fisheries, Animal Husbandry and Dairying Rajiv Ranjan Singh said on Tuesday. The milk output of India, the world's largest milk producer, stood at 230.58 million tonnes in 2022-23. Addressing an event to celebrate National Milk Day, he said the milk production has increased to around 239 million tonnes in 2023-24 on the back of improvement in productivity. The government released Basic Animal Husbandry Statistics 2024 on the occasion of National Milk Day 2024, which is celebrated every year on November 26 to honour the Father of white revolution, Verghese Kurien, who was born on this day. Singh said the per capita milk availability has also increased to 471 gm per day in 2023-24 from 459 gm per day in 2022-23. The minister noted that the average growth in India's milk production has been 6 per cent as against 2 per cent of the world's average. Singh emphasised the need to bring dairy far

The regulator stated that the advisory dated August 21, 2024, issued regarding the subject cited, has been withdrawn for further consultation with stakeholders

Analysts believe the momentum in dairy stocks such as Dodla Dairy, Heritage Foods, Hatsun Agro is here to stay

Chief Minister Siddaramaiah on Tuesday said the Karnataka Milk Federation -- known for its 'Nandini' brand of dairy products -- has achieved a milestone of procuring one crore litres of milk a day from farmers. The milk production in Karnataka was 90 lakh litres a day in May last year. Now, the KMF is getting one crore litres of milk a day. This is a milestone in the history of KMF, Siddaramaiah said. He recalled that when he was the Animal Husbandry Minister many years ago, he had handed over management of dairies to milk unions. The Chief Minister said the State now has 15 milk unions, 15 mother dairies and 16,000 societies of milk growers. He said the quantity of milk in half and one litre milk packets of 'Nandini" has been increased by 50 ML due to the rising milk procurement, and proportionately prices were increased by Rs two recently. Due to the increase in milk production, we have increased the milk quantity in the packets. This has been done because we cannot say to the m

While private players had increased prices, cooperatives and state-supported enterprises had managed to maintain stable prices. Interestingly, dairies in southern India have reduced their retail rates

Karnataka Chief Minister Siddaramaiah on Wednesday defended the Rs two hike in 'Nandini' milk prices with additional 50 ml of milk in half-litre and one litre packets, stating that it has been done keeping in mind the interest of farmers in view of rising procurement. He reiterated that milk prices have not been increased. "Last year during the same time milk (production) was 90 lakh litres (per day), now it is more than 99 lakh litre. We have to procure milk from farmers, we cannot say no to them, the milk is produced and it has to be marketed. So we have enhanced the half litre milk packet quantity by 50 ml," Siddaramaiah told reporters here. "The quantity has been enhanced and, proportionate to the increased quantity, the price has been hiked. The cost of 50 ml that has been enhanced in half and one litre packet is Rs 2.10, and we have increased Rs 2, where have we hiked the milk price?" he said. "Can we throw away (more) milk that has been produced? Can we say to farmers we will

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Bikanervala Foods Ltd said it will not increase the prices of sweetsas of now and has decided to absorb the hike in rates of milk by leading suppliers Amul and Mother Dairy. With effect from Monday, Amul and Mother Dairy have increased the liquid milk prices by Rs 2 per litre. "The recent surge in milk prices is likely to have an impact on the consumers and small sweet shop owners, leading to higher prices for milk-related products. However, it's important to note that the demand for 'mithai' and other milk-based products may not be significantly affected by these rising costs," said Manish Aggarwal, Director, Bikano, Bikanervala Foods Pvt Ltd. "We are absorbing the increased cost of milk and have no immediate plans to pass it on to our consumer," he added. Aggarwal said the company is carefully balancing consumer price sensitivity with price elasticity and competitive dynamics. "While we aim to maintain a steady volume momentum, if this scenario persists, we may need to consider