Milk Prices Rise Across India as Heatwaves and Input Costs Pressure Supply Chains

By Gautam Karmakar | Dairy Analyst | For Dairy Dimension | With inputs from Jordbrukare India

May 1, 2025 | New Delhi – In the final week of April, India’s largest dairy processors – including Mother Dairy, Amul, Verka, Gowardhan, and now others such as Nandini, Vijaya Dairy, and Heritage – revised their retail milk prices upward by ₹2 per litre on average. These price hikes, concentrated between April 28 and May 1, reflect a broad response to seasonal production strain, increased fodder costs, and heatwave-induced stress on livestock.

The data, compiled in partnership with Jordbrukare India, suggests that we are witnessing a synchronised pricing correction across India’s milk economy, driven by both climatic and structural inputs. In the absence of major procurement spikes, these hikes mark a pass-through of cost pressure rather than a response to milk shortages alone.

Mother Dairy and Amul Lead with Uniform Price Hikes

Delhi-based Mother Dairy was among the first movers, announcing a ₹2 per litre hike effective April 30, 2025. The adjustment applies uniformly across its product line – including full cream, toned, and double toned variants – across the National Capital Region and other metros. For example, Mother Dairy’s Full Cream Milk now retails at approximately ₹68/litre, up from ₹66.

Hot on its heels, Gujarat Cooperative Milk Marketing Federation’s flagship brand Amul raised prices nationwide from May 1, 2025. Full Cream Milk now stands at ₹70/litre, while Toned Milk is priced at ₹58/litre – each up by ₹2.

A spokesperson for Amul attributed the hike to “a sustained increase in production, packaging, and logistics costs,” noting that the cooperative is trying to “balance farmer remuneration with consumer affordability.”

Verka Raises Rates in Northern Markets

Verka, operating under the Punjab State Cooperative Milk Producers’ Federation, also revised its pouch milk prices on April 30 across Chandigarh, Mohali, Panchkula, and surrounding districts.

According to Verka’s official communication, Full Cream Milk increased from ₹67 to ₹69 per litre, while Toned Milk rose from ₹55 to ₹57. The price of Standard Milk was also adjusted. However, prices for bulk 6-litre packs and small-format DTM variants were left unchanged, suggesting a calibrated move to protect institutional and small household consumption.

Gowardhan, Nandini, Vijaya, and Heritage Join the Trend

Private dairy player Gowardhan, a brand under Parag Milk Foods, quietly raised milk prices by ₹2/litre nationwide in late April. While not accompanied by a formal public statement, market audits confirm that its Full Cream Milk is now priced at ₹68/litre.

Nandini, the brand of Karnataka Milk Federation (KMF), raised its prices in select urban markets by ₹2 from April 29 onward. Similarly, Heritage Foods, based in Hyderabad, revised rates in Andhra Pradesh and Telangana, increasing its Standard Milk and Full Cream variants by ₹1.50–₹2 depending on the SKU.

Vijaya Dairy (Telangana State Dairy Development Cooperative Federation) implemented parallel hikes in the Hyderabad region, aligning with industry-wide cost corrections.

What’s Driving the Hike?

According to Jordbrukare India’s analysis, three core factors are converging to create upward pressure on consumer milk prices:

1. Heat Stress on Cattle: The prolonged heatwave across northern and central India has impacted animal productivity and feed intake, reducing milk yields per animal by 5–10% in some states.

2. Fodder and Feed Price Inflation: Prices of green fodder and compound feed have spiked by 12–15% year-on-year, driven by erratic rainfall and supply chain disruptions.

3. Energy and Packaging Costs: Rising diesel and plastic input costs are also contributing, especially for cooperative dairies managing long supply chains and chilled logistics.

In private conversations with Dairy Dimension, several dairy executives emphasized that these hikes are “cost pass-throughs” and not profit-driven. “We’re not seeing procurement rates rise significantly yet, but our cost base has shifted,” said a procurement head at a major Mumbai-based dairy company.

Impact on Consumers and Market Sentiment

Urban consumers are expected to feel the pinch most immediately, especially middle-class families purchasing multiple litres daily. Small tea shops and food vendors, already navigating input price volatility, may adjust their pricing or reduce portion sizes.

On the industry side, analysts expect that milk price stability will depend heavily on June rainfall and fodder availability. If summer temperatures persist into mid-June without adequate monsoon onset, a second wave of price hikes cannot be ruled out.

Price Change Summary: Late April–Early May 2025

Note: Prices marked with an asterisk are approximate, based on retail tracking and not officially published by the company.

Looking Ahead

If procurement prices remain stable and rainfall normalises by June, dairy processors may be able to hold current retail prices. However, continued climatic unpredictability or disruptions to fodder supply could push prices further, especially in northern India.

Dairy processors will also be closely monitoring consumer elasticity, as back-to-back food inflation in essentials like pulses, rice, and vegetables could dampen discretionary dairy demand – particularly in Tier 2 and Tier 3 markets.

For more insights and regional breakdowns of dairy market movements, stay connected with Dairy Dimension and Jordbrukare India.

Gautam Karmakar is a senior dairy market analyst and columnist at Dairy Dimension. He regularly writes about pricing trends, procurement economics, and the future of India’s dairy value chain.
Reach him at info@jordbrukare.com