Parag Milk foods hikes milk prices of Gowardhan brand by Rs 2 per litre

Parag MIlk foods follows Mother Dairy and Amul; hikes milk prices of Gowardhan brand by Rs 2 per litre

Dairy firm Parag Milk Foods on Thursday increased the price of the Gowardhan brand of cow milk by Rs 2 per litre with effect from February 2 due to a rise in the cost of operations and milk production.  

With the hike in prices, Gowardhan Gold milk will now cost Rs 56, up from Rs 54 per litre, the company said in a statement.

"The price hike is due to the rise in costs of energy, packaging, logistics, and cattle feed that has led to an increase in the overall cost of operation and milk production," said Devendra Shah, chairman, Parag Milk Foods.

Over the course of a year, the dairy company increased milk prices by nearly 17 per cent.

Not only Parag, but other dairy majors such as Mother Dairy and Amul have raised milk prices in recent months due to fodder shortages, higher input costs, and inflationary pressures. Another major reason was the outbreak of lumpy skin disease among the cattle population.

Milk prices may rise further in the coming months as milk production cannot keep up with demand in the country.

"By June, Dairy players might hike milk prices by almost 5-7 per cent in the country owing to various factors and price hikes are aimed to boost milk production by helping farmers to get a good realisation of their milks," Shah told Business Standard.

For the last 8 months, heavy and patchy rains in the country existed and before that during the covid, farmers suffered from the very low price for their milk which led to decline in the milk production in the country, he added.

He also said that with these price hikes, farmers will be contended and will increase milk production till September. After that, we might again face a similar situation.

The company reported a net sales of Rs 735.89 crore in the December ended quarter (Quarter 3) of financial year 2023 (FY23), an increase of 36.6 per cent from Rs. 538.71 crore in December quarter of FY22. However, its net profit saw a decline of around 51 per cent year-on-year in the third quarter.