40% Households Feel Milk Price Pinch, Many Cut Consumption, Switch To Local Milkmen

A vast majority of Indians are feeling the pinch of a hike in milk prices, with many either reducing their milk consumption or switching to local vendors or lower-priced varieties to keep their monthly household budget in balance, according to the findings of a recent survey
40% Households Feel Milk Price Pinch
40% Households Feel Milk Price Pinch

India is the largest milk-producing country in the world, and as a country with the largest vegetarian population, milk and milk products serve as an essential source of nutrition. Besides, milk is widely used for preparing many dishes, including sweet delicacies, as well as regular beverages, such and coffee and tea, which are consumed in large quantities across India.

As such, an increase in milk prices often has a cascading effect on the household budget, and now with milk producers raising prices, it has become something of an expensive commodity for the middle-class Indian family, according to the findings of a recent survey.

Two major milk brands in India, namely Amul, marketed by Gujarat Cooperative Milk Marketing Federation (GCMMF) and Mother Dairy, have increased milk prices by Rs 2 per litre across all grades of milk.

Heavy On Budget

A huge 40 per cent of Indian households, in a survey of 13,000 respondents across 309 districts, have said they are feeling the price pinch, while 60 per cent expressed unhappiness about “paying higher prices and buying same quantity and brand”.

Around 14 per cent also said they “had switched to a low-cost brand or local supply source”, according to the survey by LocalCircles.

About 20 per cent said they had reduced their quota of milk purchase and, 3 per cent said they “have stopped buying milk”, findings further revealed.

The survey included 62 per cent men and 38 per cent women. Some 42 per cent belonged to tier-I cities, 25 per cent to tier-II and 33 per cent to tier-III, tier-IV and rural districts.

Latest Price Hike

Here is the revised price list after the recent price rise.

Revised Rates Of Amul Milk

Amul Gold: Rs 36 (half litre), Rs 68 (one litre)

Amul Cow Milk: Rs 29 (half litre), Rs 57 (one litre)

Amul Taaza: Rs 28 (half litre), Rs 56 (one litre)

Amul Slim n Trim: Rs 29 (half litre), Rs 45 (one litre)

Amul Buffalo Milk: Rs 37 (half litre), Rs 73 (one litre - with a hike of Rs 3)

Amul’s Sagar Skimmed Milk category will be sold at the regular price (present MRP rates of Rs 20 per half litre and Rs 40 for one litre) as no changes have been made for the same.

Revised Rates Of Mother Dairy Milk

Cow Milk: Rs 58/litre

Buffalo Milk: Rs 72/litre

Full Cream: Rs 68/litre

Toned: Rs 56 per/litre

Double-Toned: Rs 50/litre

Bulk Vended Milk (token milk): Rs 54/litre

Jayen Mehta, managing director, GCMMF said that prices had been hiked to compensate farmers for the increased cost of milk production. Mother Dairy on the other hand said that the surge in farm prices is only being ‘partially passed on to the consumers’, with an effective revision of 3-4 per cent. This is to secure the interests of both the milk producers and the consumers, it said.

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