ITC Ltd is set to hike milk prices partially passing on the rise in input cost to the consumer. The company operates a fresh dairy business in the East, especially in Bengal and Bihar. It will follow in the footsteps of the market leader Amul. The rise is likely to be in the range of Rs 2 a litre even as the company said it has not decided on the extent of the hike.
The Chief Operating Officer (dairy and beverages) of ITC Ltd Sanjay Singal said that, “We will do it in next few days. There is no option but to partially pass on the rise in fresh milk procurement cost.”
The last price increase was taken in the month of June 2021 when the raise was Rs 2 per litre. Producers are retailing milk at Rs 25 for a 500 ml pouch. The company will focus on growing the dairy food business in the East and ventured into the fresh milk segment four years back.
ITC launched an easy digest variant of the Ashirvaad Svasti milk brand for lactose intolerant consumers. It procures about 60,000-70,000 litre of milk from 10,000 farmers a day. The company estimated the cost of procurement has gone up by Rs 3/4 per litre in the recent months on the back of rising feedstock cost, the biggest input for farmers.
