Milk majors refuse to bring down rates
22 Oct 2014 11:46 PM GMT
In spite of the huge fall in diesel prices, milk supplying majors such as Mother Dairy and Amul are refusing to reduce the raised rates of milk and milk products. Given the fact that both milk majors have increased the price of milk by Rs 2 after every announcement to hike diesel rate, both have refused to commensurately reduce their prices even when the price of fuel has been slashed by Rs 3.37.
The chain of revision in milk prices in Delhi reflect that whenever there was an increase in fuel price by just 0.50 paisa, the milk supplying companies raised the MRP of their products by Rs 2. Therefore now that the diesel rate has been brought down by Rs 3.37, the milk prices should also be reduced by at least Rs 8.
While citing the reason that revision of milk rates was never linked with the hike of diesel prices, Mother Dairy in an email statement issued to Millennium Post said that maximum retail price hike is resorted to only when the increase in cost of raw material becomes unbearable and makes the operations financially unviable.
The agency said, ‘Hence it is incorrect to attribute the milk price revision to diesel prices and there is no reduction planned in the milk prices. Major component in the milk price is the cost of raw material and various procurement costs wherein diesel is a small cost component.’
On the other hand Amul too has also denied any chances of reducing milk prices in Delhi. Amul, which always initiated the increase in the MRP as soon as fuel prices were hiked, seemed unconcerned when it did not answer a simple question pertaining to the interest of consumers.
When Millennium Post asked about plans to decrease the prices via email on their request, the concerned person RS Sodhi did not find time to reply till the time of going to press. An Amul official, who refused to be named, said that the chances of revision of prices is very thin as after degularisation of diesel, nobody is sure that the same rates will continue for a long period or not. He further said that if diesel prices would remain consistent, price of the milk then may be reduced.
On the other side consumers are demanding that milk companies must revise the rates since diesel rates have also come down.
While full cream milk is being sold at Rs 48 per litre, price of toned milk is Rs 38 per litre and double toned is available at Rs 36 per litre. Mother Dairy, the largest milk supplier in Delhi-NCR, sells about 30 lakh litres of milk per day and Amul sells about 26 lakh litres per day.
The chain of revision in milk prices in Delhi reflect that whenever there was an increase in fuel price by just 0.50 paisa, the milk supplying companies raised the MRP of their products by Rs 2. Therefore now that the diesel rate has been brought down by Rs 3.37, the milk prices should also be reduced by at least Rs 8.
While citing the reason that revision of milk rates was never linked with the hike of diesel prices, Mother Dairy in an email statement issued to Millennium Post said that maximum retail price hike is resorted to only when the increase in cost of raw material becomes unbearable and makes the operations financially unviable.
The agency said, ‘Hence it is incorrect to attribute the milk price revision to diesel prices and there is no reduction planned in the milk prices. Major component in the milk price is the cost of raw material and various procurement costs wherein diesel is a small cost component.’
On the other hand Amul too has also denied any chances of reducing milk prices in Delhi. Amul, which always initiated the increase in the MRP as soon as fuel prices were hiked, seemed unconcerned when it did not answer a simple question pertaining to the interest of consumers.
When Millennium Post asked about plans to decrease the prices via email on their request, the concerned person RS Sodhi did not find time to reply till the time of going to press. An Amul official, who refused to be named, said that the chances of revision of prices is very thin as after degularisation of diesel, nobody is sure that the same rates will continue for a long period or not. He further said that if diesel prices would remain consistent, price of the milk then may be reduced.
On the other side consumers are demanding that milk companies must revise the rates since diesel rates have also come down.
While full cream milk is being sold at Rs 48 per litre, price of toned milk is Rs 38 per litre and double toned is available at Rs 36 per litre. Mother Dairy, the largest milk supplier in Delhi-NCR, sells about 30 lakh litres of milk per day and Amul sells about 26 lakh litres per day.
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