Retail prices of milk have been hiked due to high cost of maintaining cattle as well as costs associated with adoption of latest machineries and techniques to improve production of the commodity  With food inflation already affecting consumers’ monthly budget, the government’s initiative to provide food products at reasonable rates has fallen flat with the increase in retail prices of milk in the national capital. Consumers in Delhi and the National Capital Region (NCR) will now have to shell out additional Rs 2 per litre (l) to buy milk. Leading milk producers and suppliers such as Mother Dairy and Amul have increased milk prices. Since milk is a commodity that is protein-rich and consumed by a majority of consumers to increase calcium content in the body, they are left with no other alternative but to purchase the product at high prices.
Although the retail prices of most varieties of milk such as toned milk and full cream milk, among others would be revised during this year, the prices of double toned and skimmed milk will remain unchanged.
Reasons for price surge
“With demand for beef being high in foreign markets, dairy owners are able to fetch high prices for the slaughtered animals, which is prompting them to change their line of business. Therefore, shortage in milk supply has been witnessed, which has resulted in skyrocketing retail prices of the commodity,” says Ashish Agarwal, CEO of DM Exports, a small-sized milk and dairy product manufacturer and exporter in New Delhi.
“High cost of maintaining cattle is another reason for the hike in retail prices of milk. Dairy owners need to maintain hygienic conditions in the farms and provide vaccines to the animals to keep them protected from diseases. Adoption of latest machinery and techniques to improve production has also increased production cost,” says Rakesh Singh, managing director of Boom Buying Private Limited, a mid-sized milk supplier in New Delhi.
Considering the aforementioned reasons, dairy owners in the national capital are left with no other option but to pass some burden onto consumers.
Sabrina Mitchell |
