Hyderabad: Higher fuel costs to drive up milk prices

Yousufguda: In a major blow to the common man, milk producers are likely to pass on the increase in transport costs on to consumers by effecting a hike of a minimum of Rs 5 on the existing Rs 50 per litre. The prices may come into effect from March 1.

"Though it was difficult, during the lockdown milk prices were kept under control and we did not increase price by more than Rs 2 per litre. Considering the existing scenario with transportation and animal feed turning expensive, there is speculation that prices of milk may rise. It could be around Rs 5 or Rs 8," said K Santosh Kumar, a Vijaya Diary dealer, Karmika Nagar.

Small time private films which depend on milk to make dairy products are worried they would hard hit at a time they are slowing making a turnaround in their business. It would drive away dairy products consumers, said S Praveen, MD, DO Ghante.

Explaining their difficulties, milk dealers say that they are forced to increase the milk prices as the prices of other commodities would also go up. "We are raw milk dealers supplying to several areas across the city. Last year we increased the price by Rs 10 per litre.

Every two years, we increase prices reasonably not to burden people, due to rising costs of animal feed, transportation and labour. This time, we observed 70% increase in manufacturing cost as animal feed price increased from Rs 20 to Rs 30 and petrol price climbed from Rs 70 to Rs 90. Labour also went up by 60% to lack of manpower in the city," said N Tulasi, a milk producer from HMD Sathwahana Nagar, Kukatpally.