Mother Dairy rules out fresh milk price hike, supply 'comfortable': Meenesh Shah
Synopsis
After a ₹2-per-litre hike in May, Mother Dairy has hit pause on milk pricing — Chairman Meenesh Shah says supply is comfortable and there's no intent to raise consumer prices. With production set to grow 4-6% this fiscal and FY26 turnover at ₹20,300 crore, the dairy major is betting demand can be met without passing on more cost to households.
Key Takeaways
Mother Dairy has ruled out a fresh milk price hike, with supply described as ‘comfortable’.
The company raised retail prices by ₹2 per litre on 14 May 2025 after a one-year gap.
Chairman Meenesh Shah said India's milk production will grow 4-6% in FY26 from 250 million tonnes .
Mother Dairy sells around 55 lakh litres of milk daily and passes on 75-80% of milk realisation to farmers.
FY26 turnover rose 17% to ₹20,300 crore , lifted by milk products and cooking oils.
Mother Dairy on Tuesday ruled out any immediate increase in retail milk prices, with Chairman Meenesh Shah stating that the supply and procurement situation across the country is currently ‘comfortable’. The clarification comes just weeks after the dairy major raised prices by ₹2 per litre on 14 May to partly absorb rising input costs.
What the Mother Dairy chief said
Speaking at a press conference in New Delhi, Shah — who also chairs the National Dairy Development Board (NDDB) — said the May revision came after a gap of nearly a year and was driven by input cost pressures. ‘I do not foresee any further increase. But then if there is any increase in input cost and we are in a situation where we are unable to meet our ends, we will see,’ he said.
‘But, as of now, we have no intention to increase the consumer price,’ Shah added, asserting that farmer procurement remains steady.
Daily sales and price math
Mother Dairy, a wholly owned subsidiary of NDDB, sells around 55 lakh litres of milk every day across multiple states. The company has previously said it passes on nearly 75–80% of its milk realisation to farmers, and that the May revision was a ‘partial pass through’ of a roughly 6% rise in farmer procurement prices over the past year.
Production outlook
Shah said India's milk production is expected to grow 4–6% in the current financial year, up from about 250 million tonnes in the previous year. He added that production growth is tracking consumption demand, and that supply should comfortably meet requirements over the next 10–15 years.
The Union government, he noted, has rolled out measures to lift productivity through animal health interventions and the formation of more dairy cooperative societies across states.
Business performance
Mother Dairy, set up in 1974, reported a 17% jump in turnover to ₹20,300 crore in FY26, lifted by stronger demand for milk products and cooking oils. The company markets milk and dairy products under the ‘Mother Dairy’ brand, edible oils under ‘Dhara’, and fresh produce, frozen vegetables, snacks, pulps and concentrates under ‘Safal’.
It operates nine milk processing plants and four horticulture processing plants, alongside 16 associated plants in the edible oil segment.
What to watch next
Consumer prices will hinge on how farmer procurement costs and fodder inflation trend through the monsoon. Any sharp move on input costs could reopen the pricing question — but for now, Mother Dairy has signalled a pause.
Point of View
Which makes the category structurally vulnerable to any procurement shock. With monsoon and fodder costs still ahead, the ‘no hike’ stance is a near-term commitment, not a structural one. Watch farmer procurement prices through Q2 — that is where the next pricing decision will actually be made.
NationPress
7 Aug 2026
Frequently Asked Questions
Will Mother Dairy increase milk prices again in 2025?
Mother Dairy Chairman Meenesh Shah has said there are no current plans to raise retail milk prices, citing a comfortable supply situation. However, he indicated the company would revisit the decision only if input costs rise sharply.
When did Mother Dairy last hike milk prices?
Mother Dairy raised retail milk prices by ₹2 per litre on 14 May 2025, after a gap of nearly a year. The hike was described as a partial pass-through of a roughly 6% rise in farmer procurement prices.
How much milk does Mother Dairy sell daily?
Mother Dairy sells around 55 lakh litres of milk every day across various states in India. It is a wholly owned subsidiary of the National Dairy Development Board (NDDB).
What is Mother Dairy's turnover in FY26?
Mother Dairy posted a 17% rise in turnover to ₹20,300 crore in FY26, driven by stronger demand for milk products and cooking oils. The company sells under the Mother Dairy, Dhara and Safal brands.
How fast is India's milk production growing?
India's milk production is expected to grow 4-6% in the current financial year, from around 250 million tonnes in the previous year. Shah said this growth is sufficient to meet rising demand over the next 10-15 years.
