Ice Cream All Set to Pin 'Big' Hole in Pocket After Onions and Milk, Makers in Mood to Hike Price by 8-15%

New Delhi, January 2: With the prices of onions in the country hovering between Rs 100-150 per kilogram and milk price hiked by Rs 2-3 per litre, reports are coming that ice cream is all set become pricey by 8-15 percent in the coming days. The rise in the price of ice-cream is believed mainly due to the higher input cost, hiked price of skimmed milk powder (SMP) and acute shortage of milk.

According to a report, as published by CNBC TV18, Gujarat-based ice cream makers Vadilal and Amul are supposed to raise the price by 8-10 percent, while Mother Diary is looking forward to raise the price by 2-3 percent. The price is expected to be hiked in across the ice cream and frozen dessert portfolio. Adding on the aspect of inflation in the current market is also being considered by the market leaders. Onion Prices Shoot Up to Rs 140 Per Kg in Delhi-NCR, 790 Tonnes Imported Onions Reach India.

Elaborating the reason for the proposed hike in the ice cream segment, a Mother Dairy spokesperson said, as quoted by the news website, "With the increase in input costs, we have partially passed on around 3-5 percent price hikes to consumers that too in some variants of the ice-creams’ take home range."

It is to be known that SMP's prices raised to Rs 330 per kilogram in December 2019 from Rs 230 per kg in September last year. This situation has added more pressure on the ice cream makers of the country amid economic crisis. The Indian Ice-cream Manufacturers’ Association (IICMA) had said, "Last year average rate of SMP was Rs 150 per kg. The average rate of last 4-5 years ranges between Rs 180 to Rs 200 per kg. Last year, from January 2019 onward, rates increased day by day from Rs 180 to current rate of Rs 330 per kg." Mother Dairy Hikes Milk Prices in Delhi-NCR By Rs 3, Effective From December 15.

IICMA had even written a letter to the Union Minister of Fisheries, Animal Husbandry and Dairying regarding the issue and have raised their concerns. They stated, "As you may be aware that the country is facing an acute shortage of milk and SMP due to which it is expected that manufacturers of milk and milk products are going to face tough time ahead. Local prices of SMP have broken all records and all the manufacturers are feeling the heat even before the start of season."

Looking at the less availability of milk in the December to March period -- considered to be the best season for milk production -- Amul and Mother Dairy had raised milk prices by Rs 2-3 per litre. Following the concerns raised by market leaders, Department of Animal Husbandry & Dairying is scheduled to meet them on Friday. In the meeting, availability of milk, pricing for consumers and the procurement price for producers are likely to be discussed. Even members from co-operative and private dairies have been called.

(The above story first appeared on LatestLY on Jan 02, 2020 07:15 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).