Pune: The retail price of Chitale cow milk has increased by Re 1 per litre from September 1. This increase in price was due to the low procurement of milk and the rise in demand owing to the hike in price of skimmed milk powder and white butter. However, consumers can heave a sigh of relief as other local brands like Katraj, Urja, etc, will not be increasing their prices.
“The retail price of cow milk has increased by Re 1 per litre and this was due to the drop in the procurement of milk owing to the drought-like situation in Marathawada and Vidharbha and also the recent flood in Kolhapur and Sangli,” said Girish Chitale, Partner, Chitale Dairy. “There has been an increase in demand and, therefore, we decided two weeks back to increase the price by Re 1 from September,” added Chitale.
With this increase in milk price, retailers have been facing problems. Similarly, due to paucity of 50 paise coins, which have been less in circulation. PK Jadhav, a shopkeeper from Shivajinagar, said, “We have been forced to sell one packet of Chitale cow milk for Rs 23, as 50 paise coins are not much in circulation and people do not take them as change. However, we have been selling two packets for Rs 45.” However, local brands like Katraj and Urja have decided not to increase the retail price of cow milk.
Katraj Dairy Managing Director Vivek Kshirsagar said, “There is immense competition in the market due to big players like Amul and Nandini and if we increase prices, it might affect our business and these big players can capture the market. Therefore, we have decided not to increase the retail price and also decided to pay Rs 28 per litre to our farmers.”
Maharashtra Milk Producers and Processors Association Secretary Prakash Kutwal, who is also the owner of Urja Dairy, said, “Due to the low procurement of milk and increasing prices of milk powder and butter, dairies have been facing problems for the past one month. However, we have decided not to increase the retail prices, as there was a big margin in the rates. We sell milk at a much cheaper rate to the dealers so there was a huge margin and, therefore, we do not see any reason to increase the retail prices.”
