In a significant move that's set to impact millions of households across the country, dairy giants Mother Dairy and Amul have announced a hike in milk prices by Rs 2 per liter. This price revision is scheduled to come into effect starting May 14, 2026, which falls on a Thursday. The decision by these leading dairy cooperatives follows a period of sustained pressure from increasing operational and input costs, which has necessitated a price adjustment to ensure the long-term sustainability of the dairy supply chain, while both companies have pointed towards the rising expenses associated with cattle fodder, transportation fuel, and packaging materials as the primary drivers behind this necessary move. Also, the cost of procuring raw milk directly from farmers has seen a notable uptick, prompting the dairy majors to pass on a portion of this increased burden to the end consumers.
Factors Driving the Price Revision
Mother Dairy, in an official statement released on Wednesday, provided a detailed explanation of the factors that led to this price hike. The company highlighted that the cost of procuring milk from farmers has surged by approximately 6 percent over the past year alone. Despite facing these mounting financial pressures, the company stated that it had made concerted efforts to keep prices stable for a considerable duration to minimize the impact on its vast customer base. However, the continuous and sharp rise in input costs, including the price of essential cattle feed and the fuel required for logistics, made the current price adjustment unavoidable. The company emphasized that the hike is crucial to ensure that dairy farmers continue to receive remunerative prices for their produce, thereby securing the future of milk production in the region.
Detailed New Price Structure in Delhi-NCR
The price hike will be reflected across various categories of milk sold by Mother Dairy, particularly in the Delhi-NCR region. According to the revised rate list, bulk vended milk, commonly referred to as token milk, will now be priced at Rs 58 per liter, up from the previous rate of Rs 56 per liter. The price of full cream milk sold in pouches has been adjusted to Rs 72 per liter. Toned milk, which was previously available to consumers at Rs 58 per liter, will now cost Rs 60 per liter. Similarly, double toned milk has seen a price revision and will now be sold at Rs 54 per liter. For consumers who prefer cow milk, the price has been increased from Rs 60 per liter to Rs 62 per liter. These changes are expected to have a direct and immediate impact on the monthly grocery budgets of families residing in the national capital region and beyond.
Amul's Perspective and Farmer Welfare
Prior to Mother Dairy's announcement, Amul had also declared a similar increase of Rs 2 per liter across its various milk variants. Amul noted that its last price revision took place in April 2025, indicating that it had held prices steady for over a year. The cooperative emphasized its unwavering commitment to farmer welfare, stating that it returns nearly 75 to 80 percent of the revenue generated from milk sales directly back to the farmers. By increasing the retail price, Amul aims to provide better financial returns to the milk producers, which is essential for sustaining production levels amidst rising costs for the farmers themselves. The company believes that maintaining a balance between the interests of consumers and the livelihoods of producers is vital for the overall health of the Indian dairy industry.
Market Presence and Financial Performance
Mother Dairy continues to maintain a formidable presence in the Delhi-NCR market, with its daily sales reaching a staggering 35 lakh liters. The company's financial performance has remained solid, as evidenced by its turnover of Rs 20,300 crore in the last financial year, which marked a significant 17 percent growth. This growth was largely driven by a strong and consistent demand for dairy products and edible oils. On the other hand, Amul's decision to hike prices is also strategically aimed at ensuring that farmers are adequately compensated to keep up with the growing production demands of the nation. As milk is an essential daily commodity for every household, this price hike is likely to be felt across all segments of society, influencing the overall cost of living. The companies maintain that this step was an absolute necessity to offset the 6 percent rise in procurement costs and other logistical expenses.