Mother Dairy, a company doing business in dairy products, can increase the price of milk and curd in the next few months. Such an indication has been given by the officer of the company. Mother Dairy had recently increased the rates of milk, curd, buttermilk, etc. The reason behind this was cited as the increase in cost prices. It was also said that the cost of transportation has increased due to the increase in the price of diesel. So there is no other option but to increase the rate. The company also has to say that the benefit of an increase in the price of dairy products like milk and curd also goes to those farmers who sell their goods from Mother Dairy.
With this, Mother Dairy has expressed hope that in the current financial year, its sales can increase by 20 percent and the turnover can go up to Rs 15,000 crore. Apart from milk and dairy products, Mother Dairy also does business with fruits and vegetables. Mother Dairy is a subsidiary of the National Dairy Development Board, which had sales of Rs 12,500 crore in the year 2021-22.
sales expected to increase
Mother Dairy Managing Director Manish Bundlish says about the increase in sales, in the current financial year, demand for milk and dairy products is witnessing a growth of more than 15 percent, which will benefit Mother Dairy. Mother Dairy's 70 percent business is in milk and dairy products only. Bandish says that ice cream sales are also expected to be bumper this year because its business was at a standstill in Corona. People had stopped buying ice cream due to fear of deteriorating health. Its sales had dropped drastically in the last two years.
According to the MD of Mother Dairy, the business of fruits, vegetables, and edible oils is witnessing a growth of 30%. They believe that Mother Dairy has a big competition with e-commerce companies and is facing many challenges. Despite all these things, the business of fruit, vegetable, and edible oil has been strong.
Prices increased last month
According to an estimate, the farmers of Delhi-NCR supply 90 lakh liters of milk every day of which Mother Dairy and Amul have 40-40 percent share. Mother Dairy procures milk from states like Uttar Pradesh, Rajasthan, and Andhra Pradesh.
Last month, Mother Dairy raised the price of milk by up to Rs 2 per liter. This increase was done in Delhi-NCR. The company said that milk is being taken from farmers at an expensive rate and the cost has also increased. The cost of transportation has increased, along with the prices of cattle feed and grains have also increased. Earlier in March, Mother Dairy had increased the price of milk by Rs 2 per liter.
effect of an increase in cost price
The MD of Mother Dairy says that increasing the price of milk can be considered. However, the increase will not happen so quickly and it may take three-four months. The company is currently looking at cost values such as feed price and transportation costs. Mother Dairy has 9 Dairy Processing Plants. Apart from this, third-party service is also taken. Mother Dairy processes more than 50 lakh liters of milk every day.