Mother Dairy hikes price
NEW
DELHI: In its fourth hike in the past one year and the second one this
year alone, Mother Dairy has yet again revised milk prices. Prices of
all varieties of milk will cost Rs 1-2 more from Monday. The move comes
two days after Amul hiked milk prices across its various products.
In its fourth hike in the past one year and the second one this year alone, Mother Dairy has revised milk prices effective from today (yes..today May 12). Prices of all varieties of milk have gone up by Rs 1-2. The move comes two days after Amul hiked milk prices across its various products.
As reported by ToI on February 1, 2014, after Mother Dairy's last price hike, industry sources attributed the steady rise in prices to a shortage of raw milk. They had earlier predicted the next increase in prices by June or July but say market trends forced them to revise rates earlier than expected.
"There has been an ongoing rise in prices of raw milk over the last few months, coupled with the need to ensure availability of milk in the consumer market. The export of skim milk powder has risen sharply in the international market in the past in the past one
year due to a rise in China's imports. This has also been assisted by a favourable foreign exchange rate. Meanwhile, the government is also continuing to give a 5% subsidy on export of milk that was started in 2013 to boost exports," said sources.
The rise in exports means that farmers are getting a better price for the raw product and the industry has had to pay more for procurement. "Add to it the rising price of raw material used for production of milk like fodder etc, and you have a rather worrying situation," said sources. Since May 2013-just before the first of the last four hikes was implemented-the cost of a litre of milk has gone up by Rs 8-9 across the various types of milk available.
"Usually milk prices fall in winter but in India the prices have only been heading north. The international crisis is over but prices here are still on the higher side. The Met department predicting a Now that the IMD has predicted a poor monsoon too may impact prices and keep them on the higher side. We do not expect any fall in prices, if there is any decrease at all, before the third financial quarter," said sources.
In its fourth hike in the past one year and the second one this year alone, Mother Dairy has revised milk prices effective from today (yes..today May 12). Prices of all varieties of milk have gone up by Rs 1-2. The move comes two days after Amul hiked milk prices across its various products.
As reported by ToI on February 1, 2014, after Mother Dairy's last price hike, industry sources attributed the steady rise in prices to a shortage of raw milk. They had earlier predicted the next increase in prices by June or July but say market trends forced them to revise rates earlier than expected.
"There has been an ongoing rise in prices of raw milk over the last few months, coupled with the need to ensure availability of milk in the consumer market. The export of skim milk powder has risen sharply in the international market in the past in the past one
year due to a rise in China's imports. This has also been assisted by a favourable foreign exchange rate. Meanwhile, the government is also continuing to give a 5% subsidy on export of milk that was started in 2013 to boost exports," said sources.
The rise in exports means that farmers are getting a better price for the raw product and the industry has had to pay more for procurement. "Add to it the rising price of raw material used for production of milk like fodder etc, and you have a rather worrying situation," said sources. Since May 2013-just before the first of the last four hikes was implemented-the cost of a litre of milk has gone up by Rs 8-9 across the various types of milk available.
"Usually milk prices fall in winter but in India the prices have only been heading north. The international crisis is over but prices here are still on the higher side. The Met department predicting a Now that the IMD has predicted a poor monsoon too may impact prices and keep them on the higher side. We do not expect any fall in prices, if there is any decrease at all, before the third financial quarter," said sources.
SHYAM KISHOR SINGH
PGDM 1 yerar
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