The Indian dairy industry is witnessing another price surge as Hatsun Agro, a leading private dairy in South India, has announced a fresh round of price hikes, effective from Friday. The latest increase pushes the price of full cream milk to ₹80 per litre, the highest ever recorded.
According to an official distributor circular, the price of Arokya milk will rise by ₹4 per litre, while a kilogram of curd will now cost ₹3 more. A one-litre carton of full cream milk will retail at ₹82.
Ripple Effect on Indian Dairy Market & Food Industry
The Indian dairy sector plays a critical role in household consumption and the food service industry. Restaurants, tea shops, and office canteens—many of which depend on private dairy brands like Hatsun—are expected to face increased operational costs.
“A ₹4 per litre increase directly impacts tea, coffee, and dairy-based products, increasing the financial strain on salaried employees, daily wage workers, and households,” said T. Sadagopan, a leading consumer rights activist. He has urged an immediate rollback of the price hike.
The Tamil Nadu Milk Dealers’ Welfare Association strongly opposes Hatsun’s unilateral price increase, warning that this move could trigger a chain reaction, with other private dairies following suit.
Recurring Price Hikes in Indian Dairy Industry
According to Jordbrukare India Dairy Analysis, this trend is part of a broader Indian dairy market shift seen in recent months. In December 2023 and February 2024, major private dairies in Andhra Pradesh raised milk prices by ₹2 per litre twice, along with a ₹5 per kg hike in curd prices. Tamil Nadu’s mid-sized and large dairy players soon followed, pushing consumer costs even higher.
Private dairies justify the increases by citing rising procurement and raw material costs, but industry experts and consumer activists dispute these claims.
“While summer may cause a slight dip in milk production, procurement and raw material costs have not increased significantly,” said S. A. Ponnusamy, President of the Tamil Nadu Milk Dealers’ Welfare Association.
Lack of Price Regulation in Indian Dairy Market
Consumer activists argue that the absence of state regulation over private dairies is a key factor behind the unchecked price surges. While Tamil Nadu’s state-run Aavin Dairy operates under government-controlled pricing, private dairies remain unregulated.
Industry experts at Jordbrukare India suggest that the Tamil Nadu government should seek central approval to regulate private milk pricing and introduce new legislation in the upcoming assembly session to prevent arbitrary price hikes. Such measures could safeguard both farmers and consumers while maintaining fair pricing in the Indian dairy industry.
Final Thoughts from Jordbrukare India Dairy Analysis
This latest Indian dairy news highlights a growing concern—private dairy firms hold pricing power over consumers and businesses, with little oversight. If trends continue, India’s food service industry, especially tea shops and small eateries, will struggle to sustain their businesses.
With milk and curd being staples in Indian households, the need for policy intervention in the dairy sector has never been stronger. The future of the Indian dairy market now hinges on whether state and central governments take decisive action to introduce price regulations.
