Milk prices in Maharashtra increased by ₹2 per litre for both cow and buffalo milk from Monday, August 11, following approval by representatives of major cooperative and private dairies. According to reports from NDTV, the decision was taken at a meeting of the Milk Producers and Processors Welfare Association chaired by its president Gopalrao Mhaske on Friday. The revised prices were announced on August 9 and were scheduled to come into effect from August 11. This price hike is likely to result in a slight increase in the monthly expenses of common consumers, with customers now having to pay an additional two rupees for each litre.
The price hike comes weeks after the government told Parliament that there was no proposal to introduce a Minimum Support Price (MSP) for milk. In a written reply to a starred question in the Lok Sabha, Minister of Fisheries, Animal Husbandry and Dairying Rajiv Ranjan Singh said milk prices were determined by cooperatives and private dairies based on market conditions. As reported by ANI, he said the government was implementing several measures aimed at protecting dairy farmers, stabilising milk prices, safeguarding consumer interests and improving quality monitoring.
The association attributed the price hike to significant increases in production costs, with diesel prices rising by approximately ₹10 per litre, sugar prices increasing by ₹12 per kilogram, and packaging material costs rising by over 30%. According to NDTV, the association noted that procurement prices of milk have risen and further increase is expected, making the current price revision necessary. Dairy representatives said the increase was necessitated by rising diesel prices and higher transportation and operational costs, as milk collection and distribution involves extensive transportation networks. The association clarified that this price hike is necessary to balance production costs and ensure fair compensation for dairy producers, as rising costs have increased financial stress on dairy producers and processing organizations.
The price increase coincides with a significant expansion in India's milk-based drinks market, which is experiencing unprecedented growth driven by health-conscious consumers seeking convenient, protein-rich alternatives. According to Mint, India's flavoured milk drinks market grew to ₹7,600 crore in 2025 from ₹4,420 crore in 2021 and is projected to reach ₹8,360 crore in 2026. Strategy consulting firm Redseer estimates that value-added dairy is growing at about 20% annually, faster than the broader ready-to-drink market. Major consumer companies are capitalizing on this trend, with Hindustan Unilever launching Horlicks Milkshake in June and Zydus Wellness introducing Complan Powerplay protein milkshake, while Parag Milk Foods reported ₹118 crore revenue in the June quarter, up 59% year-on-year from its New Age Business segment.
The shift toward value-added dairy products offers significant margin improvements for companies, with Heritage Foods estimating that such beverages can generate EBITDA margins around 4-5 percentage points higher than regular liquid milk. Milky Mist reported that value-added dairy products can generate margins of 15%-40%, compared with 5%-8% for liquid milk. This financial rationale is encouraging dairy companies to move consumers toward higher-value products as rising milk procurement costs make traditional liquid milk less profitable. The category's growth is also being supported by quick-commerce platforms making it easier for newer brands to reach health-conscious consumers, while traditional products like buttermilk and lassi are seeing volumes rise by more than 50%-60% during summer months.
