Pay a Little More for Your Cool Treats
New Delhi: Ice-cream majors such as Cream Bell, Mother Dairy, Amul and Vadilal have increased prices by 5-8% this month because of higher input costs from items like sugar and milk powder, a move that has come after two years.
In the past one year, the skimmed milk power prices have risen 90%, sugar 30%, white butter 40%, and milk by over 30%, said RS Sodhi, MD, Amul. The dairy cooperative has a 40% share in the ₹ 2500-crore organized ice cream market.
“We have increased ice-cream prices by 5% to 8% since February this year. This increase has come after two years. In 2014-15, there must have been a marginal 2% to 3% increase in prices as globally commodity prices were very weak,” Sodhi said.
Gujarat-based Vadilal group too has raised prices by 6% to 7%, and has also lowered the quantity in their packs in the ₹ 5-`10 range, said the company’s MD Rajesh Gandhi. Mother Dairy has also increased ice cream prices by 5%, said its MD S Nagarajan.
“In the past one year, buffalo milk prices have increased by 15% to ₹ 3739 a litre. This increase has to be passed on to the consumers,” he said.
But despite the rise in prices, the industry expects annual sales growth to accelerate to 15-20% from 10-12% in recent years.