Rising Milk Prices Impact Food Industry in India
Milk price hikes hit food businesses
Hindustan Times
Image: Hindustan Times
Dairy companies Amul and Mother Dairy have increased milk prices by ₹2 per litre, affecting food businesses across India. The hike, attributed to rising input costs, poses challenges for vendors and restaurants, forcing some to reconsider pricing strategies and ingredient sourcing.
- 01Amul and Mother Dairy raised milk prices by ₹2 per litre, the first hike since last year.
- 02Food vendors are hesitant to increase prices due to price-sensitive customers.
- 03Dessert outlets are facing increased costs due to higher milk and cream prices.
- 04Restaurants may shift to cheaper ingredients, risking quality and safety.
- 05The overall impact on food businesses could lead to reduced portion sizes or alternative sourcing.
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Dairy giants Amul and Mother Dairy have raised milk prices by ₹2 per litre as of May 14, marking the first increase since Amul's last revision in May 2022. The price hike is attributed to rising input costs, including cattle feed and packaging. Vendors, like Pradeep Pandey, a tea seller in Vasant Kunj, Delhi, are reluctant to raise prices due to their customers' price sensitivity, leading them to consider reducing portion sizes instead. Dessert outlets have already felt the impact, with Mohd Faheem of Uncle Shake noting that high LPG prices and now milk costs are squeezing their profit margins. For niche players like Moussestruck in Mumbai, rising cream prices have forced them to increase their prices as well. Restaurant owners, such as Kapil Shankar, express concerns about switching to alternative dairy sources, which could alter the taste of their dishes. The pressure from rising milk prices could lead to shifts in sourcing and increased risks of adulteration in dairy products, as highlighted by Narendra Singh, executive chef at The Roseate in New Delhi.
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The increase in milk prices is likely to lead to higher costs for food businesses, potentially resulting in reduced portion sizes or increased prices for consumers.
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