January 22, 2014

India's private producers lift milk prices

Due to increase in procurement price, prices of standardised and full cream milk supplied by private brands in India will go up by INR2 (US$0.03) a litre, according to sources of at least two companies.

A litre of full cream milk will now cost INR42 (US$0.68).

"Aavin, the government-run milk agency, hiked the procurement prices by INR3 (US$0.05), causing our suppliers also to demand an increase," a company source said.

However, prices of toned and double toned milk, which constitute about 60% of the market share, have been retained at INR32 and INR28 (US$0.52 and US$0.45) a litre respectively.

Consumer activist T. Sadagopan questioned the rationale behind the hike. He said a price control monitoring body should be formed with the Food secretary, NGO representatives and private companies.

S.A. Ponnusamy, State president, Tamil Nadu Milk Dealers Welfare Association, termed the hike as unfair. He said that while milk prices are increased at least once in six months, milk dealers do not get anything.