PUNE – Consumers in Pune and neighbouring regions will now pay more for their daily milk as the Pune District Cooperative Milk Producers’ Union, popularly known as Katraj Dairy, has announced a price hike of ₹2 per litre for its packaged milk products. The revised prices—₹74 per litre for full cream milk and ₹64 per litre for toned milk—came into effect on Tuesday.
According to a press statement issued by Manoj Limaye, the cooperative's managing director, the hike is necessitated by rising operational expenses, including transportation and processing costs.
“The decision was essential to balance the increasing cost of inputs and ensure fair returns to farmers, while maintaining uninterrupted supply to consumers,” said Limaye.
Katraj Dairy, a key player in the Indian dairy industry, collects between 2 to 2.5 lakh litres of milk daily, primarily distributed across Pune and surrounding districts.
Rising Input Costs and Farmer Pressure
This retail price hike closely follows an earlier decision by the union to increase procurement prices paid to dairy farmers. In early May, Katraj Dairy raised procurement rates by ₹2 per litre for milk containing 3.5% fat and 8.5% SNF (Solids Not Fat), bringing average procurement prices above ₹35/litre.
This move comes amidst widespread farmer protests and demands for better compensation, citing soaring feed and fodder costs and declining milk yields. The Maharashtra state government has stepped in with a ₹5/litre subsidy for dairies that pay farmers a base rate of ₹35/litre.
Summer Heat Impacts Milk Supply
Milk procurement across Maharashtra has dropped significantly due to the intense summer heat, which traditionally leads to lower milk yields from dairy animals. This year’s unusually harsh summer has intensified the situation, compelling dairies to increase procurement prices to meet demand.
Industry observers believe that the situation may ease as the monsoon season approaches, potentially improving animal productivity and milk availability, which could stabilize or even reduce prices in the coming months.