Milk gets costlier: TN raises procurement price; wholesale rate in Mumbai to cross Rs 100
Milk prices are set to increase in Tamil Nadu and Mumbai, as dairy producers point to higher costs in cattle feed, transportation, and maintenance. In Tamil Nadu, Chief Minister C Joseph Vijay announced a Rs 3 per litre rise in milk procurement prices, taking them from Rs 41 to Rs 44 per litre. This decision will cost the state government an extra Rs 60 crore per month, or Rs 720 crore annually.
The hike, implemented less than two weeks after a previous increase from Rs 38 to Rs 41 per litre, aims to counter rising expenses.
In Mumbai, the Bombay Milk Producers Association has also announced a Rs 9 per litre increase in wholesale milk prices from September 1. The wholesale rate will climb from Rs 93 to Rs 102 per litre and continue until February 28, 2027. Dairy farmers and cattle shed operators in the Mumbai region attribute the hike to soaring expenses related to green fodder, grain husks, oil cakes, transportation, and livestock upkeep.
The wholesale price hike is anticipated to drive up retail milk prices and escalate the cost of dairy products like curd, paneer, and sweets, especially in the lead-up to the festive season.
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