Your Summer Savior May Become Heavier On Your Pocket

No season, no excuse, and no restrictions are needed to consume this product. It brings a lot of variety along with it but now it looks like it is boiling at a high pace. Yes, with the rising temperature, milk prices are also boiling. Milk price has increased by 14-15% within a few months and we are still counting. For the past several months, there has been a continuous increase in the prices of milk. In January 2022, the inflation rate of milk was 4.09 per cent, which is now at 9.65% which is more than double.

If you look at the inflation of milk,

-2 litre pack of Amul Fresh was available for Rs.88 per two litres on June 30, 2021, now it is available for Rs.108. This means Rs 20 more expensive

-Amul’s buffalo milk, which was available at Rs 59 per litre on June 30, 2021, is getting 19% costlier at Rs 70 per litre.

-Amul’s cow milk was available at Rs.47 per litre for the first one and a half years, which is now available at Rs.56 per litre means about 20% costlier.

Mother Dairy and Amul have increased the price of milk five times a year. Recently, Amul and Mother Dairy have increased their milk price by Rs.3 & Rs.2 per litre respectively.

Additionally, if we compare milk price hike with rising inflation, milk price hike stands at double as the rate of rising inflation stands at 7%. According to data, it is evident that every year milk prices are getting higher because of various reasons like:

–       Increasing consumption demand

–       Increase in transportation cost

–       Low availability of fodder which in turn makes them costlier

–       Covid-19 Pandemic effects

Year 2020 was an exception because of pandemic, milk price was relatively stable due to underlying reasons:

-Due to the lockdown, hotels and restaurants were closed

-Mass gathering was not allowed

-Big events like marriages with mass gatherings were restricted

Today, India is the largest producer of milk in the world, contributing 23% of global milk production.  On average, per person’s daily milk consumption stands at 427-500 grams.

This, in turn, will make the milk product costlier and with the approaching summer season, the consumption of milk-derivative products like lassi, chaach, and ice-cream will also face pricing pressure and will eventually become expensive. This in turn will again hit the pocket of consumers.