With the domestic budget getting adversely affected due to price hike of several commodities in the past year, days ahead of Ganeshotsav, it has come to light that the Bombay Milk Producers Association has raised the wholesale price of fresh milk by INR 7. In addition, the retail price is expected to rise further by INR 5.
As per the association, the wholesale price of fresh milk from INR 73 per litre to INR 78. With an additional transportation charge of INR 2, the wholesale rate will touch INR 80. With this, the price of milk in the retail markets and shops is expected to rise to INR 87-89 per litre from the current INR 82-84.
Besides, with the hike in prices for wholesale milk, the cost of milk-based products including tea is also expected to go high in the coming months.
Explaining the reason behind the hike, the association chief said that milk production cost has gone higher than ever with tremendously increasing prices of bovine, feed, medicines, wages and animal care. The cost for procurement of milk has also gone up 8-10 per cent in the past six months owing to various reasons such as cattle diseases in some of the major milk-producing states and high prices of cattle feed.
It is pertinent to note that recently, Amul and Mother Dairy also increased the price of milk by two rupees per litre.