Milk price hike: Mumbai, Tamil Nadu households to face higher bills as prices rise ahead of festive season

Mumbai households and those in Tamil Nadu are set to face higher milk bills as the Bombay Milk Producers Association announced a price hike from Tuesday. The wholesale milk price in Mumbai will rise by ₹9 per litre, increasing the cost from ₹93 to ₹102 per litre and maintaining this rate until 28 February, 2027. The hike is due to increased costs of fodder, oil cakes, grain husks, transportation, and livestock maintenance.

With festivities approaching, the price rise may further increase the cost of milk products such as sweets, paneer, and curd. This may also lead to higher expenses at local bakeries and restaurants that serve milk-based products.

The retail price for farm-supplied milk in Mumbai could surge to approximately ₹110 per litre for consumers. In August, the Gokul cooperative milk union in Maharashtra raised the retail price of buffalo milk by ₹2 per litre, bringing it to ₹78 per litre in Mumbai and Pune. This price increase was attributed to rising procurement costs.

Milk prices are also on the rise in Tamil Nadu, as Chief Minister C Joseph Vijay announced an increase in the milk procurement price to ₹44 per litre on Monday. This represents a cumulative increase of ₹6 across the state. The announcement was made under Rule 110 of Tamil Nadu Assembly rules due to rising input costs, as stated by stakeholders.

The state government will incur additional expenses of ₹30 crore per month and ₹360 crore per year. This increase in milk procurement cost aims to benefit over 3.16 lakh milk producers in the state. Additionally, the Vijay government announced that it will raise the incentive for milk producers from ₹3 to ₹5 per litre.