Mumbai, Tamil Nadu to see steep hike in milk prices
What's the story
Mumbai and Tamil Nadu are set to witness a steep hike in milk prices, just ahead of the festive season. The Bombay Milk Producers Association has hiked wholesale milk prices by ₹9 per liter in Mumbai, taking the price from ₹93 to ₹102. This price will be effective till February 28, 2027. The hike has been attributed to rising costs of fodder, oil cakes, grain husks, and transportation expenses, besides increasing expenses related to livestock maintenance.
Price increase
Steepest price hike in MMPA's history
The Mumbai Milk Producers' Welfare Association (MMPA) announced the steepest price hike in its 70-year history.
MMPA chairman C K Singh said, "The wholesale price hike by ₹9 per liter from September 1 means retail rates may also shoot up to ₹115-125 per liter or more, depending on the localities served, and the local demand."
This decision was taken at the bi-annual general body meeting of the MMPA.
Consumption
Increased demand for milk during festive season
Mumbai consumes over 50 lakh liters of buffalo milk every day, with MMPA supplying more than seven lakh liters.
The price hike is expected to affect demand for milk, which usually increases by 35-40% during festive and marriage seasons.
This includes large quantities of sweets being prepared at households and commercial establishments.
Statewide increase
Tamil Nadu government announces ₹6 per liter increase
In Tamil Nadu, Chief Minister C Joseph Vijay announced a hike in the milk procurement price to ₹44 per liter.
This is a cumulative increase of ₹6 across the state and will cost the government an additional ₹30 crore monthly.
The move is expected to benefit over 3.16 lakh milk producers in Tamil Nadu.