Milk consumers across Maharashtra will have to pay more from Tuesday, August 11, as major cooperative and private dairies have decided to increase cow and buffalo milk prices by Rs 2 per litre.
The price hike comes amid rising procurement, fuel, packaging and operating costs faced by dairy producers and processors across the state.
Price Hike
The decision was taken at a meeting of the Milk Producers and Processors Welfare Association, chaired by its president Gopalrao Mhaske.
Representatives of major cooperative and private dairies approved the Rs 2-per-litre increase after reviewing the rising costs faced by milk producers and processors. The revised prices will come into effect across Maharashtra from August 11.
Costs Climb
According to the association, rising operating expenses have made the price increase necessary.
It said diesel prices have increased by Rs 10 per litre, significantly adding to transportation and distribution costs for dairies. Packaging expenses have also risen by around 30 per cent, further increasing the overall cost of operations.
Procurement Pressure
Dairies are also paying more to procure milk from producers. The association said milk procurement prices have already increased and are expected to rise further.
Since procurement is a major component of the final retail price of milk, any increase in the cost of sourcing milk puts additional pressure on dairy companies to revise consumer prices.
The latest decision is aimed at helping dairies absorb higher input and supply-chain costs.
Dairy Products to Cost More
Consumers could also face higher prices for several dairy products. The association has decided to increase the prices of dairy products by up to 10 per cent.
The exact increase will vary depending on the product and the dairy company.
The price revision is likely to increase household expenses, particularly for families that purchase milk daily. Higher dairy product prices could also affect spending on other commonly consumed milk-based products.
