On Tuesday, Mother Dairy stated that the nationwide supply and procurement situation is “comfortable” and that there are no urgent intentions to raise retail milk prices further.
On May 14, a wholly owned firm of the National Dairy Development Board (NDDB) increased the retail price of milk by 2 rupees per litre. This company sells about 55 lakh litres of milk per day across multiple states. The increase, which did not occur until the following year, was characterised as a partial pass-through of the growing costs of inputs and farmer procurement.
I am not anticipating any additional growth. On the other hand, Mother Dairy Chairman Meenesh Shah stated during a news conference in New Delhi, “We will see if there is any increase in input cost that causes us to be unable to meet our ends.”. “However, we do not intend to raise prices for the general public at this time.”
According to Shah, who is also the chairman of the NDDB, the country’s milk production is anticipated to increase by 4-6 percent this fiscal year, from approximately 250 million tonnes recorded last year. He also mentioned that milk procurement from farmers is comfortable.
In addition, he mentioned that the increase in consumption is matching the expansion in milk production, thus India should have no trouble meeting the demand for dairy products in the next years. Shah pointed out that more dairy cooperative societies are being formed across the country, and that the Union government has been taking steps to improve animal health and productivity.
Despite attempts to mitigate the impact on consumers, Mother Dairy noted in an earlier statement that the May modification was required due to a six percent increase in farmer procurement prices over the past year. The corporation maintained that it still passes on between seventy-five and eighty percent of its milk sales revenue to farmers, and that the change merely constituted a partial pass-through.
The rising demand for milk products and cooking oils drove Mother Dairy’s 17 percent growth in turnover to Rs 20,300 crore in FY26. The company was established in 1974. The company’s brands include Mother Dairy for milk and dairy products, Dhara for edible oils, and Safal for fresh produce and processed horticultural items. In addition to its 16 affiliated units that produce edible oil, it runs nine plants that process milk and four plants that process horticulture.
Image: The Hindu
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