The company said the decision was driven primarily by higher raw milk procurement prices paid to farmers. According to the processor, input costs have continued climbing over recent months, forcing dairy companies to reassess pricing strategies in order to maintain supply stability and protect farmer payments.

India’s dairy industry has been navigating a challenging operating environment marked by volatile feed costs, weather-related production constraints and sustained consumer demand. Milk processors across the country have increasingly adjusted retail prices over the past year as procurement competition intensifies between cooperatives and private dairy companies.

Mother Dairy emphasized that the increase aims to support producers while ensuring uninterrupted availability of liquid milk in urban markets. The processor noted that a significant share of every consumer rupee flows back to dairy farmers, reinforcing the sector’s dependence on stable farmgate economics amid elevated production expenses.