Amul and Mother Dairy do not anticipate hike in milk prices in near future

Over the next couple of weeks, milk procurement is seen increasing in south India, aided by an expected normal rainfall this year.
  • Franchise India Team Editor
Restaurant India

Top domestic dairy brands, Amul and Mother Dairy expect milk and milk product prices to remain stable this summer owing to adequate supplies.

Over the next couple of weeks, milk procurement is seen increasing in south India, aided by an expected normal rainfall this year.

Milk prices were increased by Rs 2 a litre in February and March over concerns of low stocks and higher compensation to farmers.

RS Sodhi, managing director of Gujarat Co-operative Milk Marketing Federation Ltd, which markets its products under the ‘Amul’ brand said, “Milk prices will remain stable this summer as the price increase has been done by all companies till March.”

Sandeep Ghosh, Business Head- milk, Mother Dairy, said, “At the onset of summer, we are keeping a close watch on the milk prices. As of now, we don’t foresee any major change in the near future.”

For the past three months, prices of skimmed milk powder have remained stable at Rs 240-250 per kg. In summer, when milk production drops, the dairy sector is compelled to manufacture liquid milk and other products by diluting milk powder.

Sodhi said, “Dairy cooperatives currently hold 1.25-1.5 lakh tonnes of skimmed milk powder (SMP) stock, compared with 2 lakh tonnes a year ago.” 

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