In recent times it has been observed that the prices of milk, coffee, cocoa and sugar have been dropping in India. Despite this, the domestic prices of dairy and chocolate products are not likely to come down.
The raw materials for these products became about 20% cheaper around 2011. Leading food manufacturers like Cadbury, Nestle, Amul, Britania and Parle have not reduced their prices and are not likely to do so in the near future as many of them say that the dip in the cost is seasonal.
The companies also said that the prices will not have to be increased for some time to come. Vipul Chaudhary, the chairman of the Gujarat Cooperative Milk Marketing Federation, which sells products under the brand Amul said, “We will not be lowering prices of milk or milk products, whether it’s ice-cream or cheese”. Chaudhary added that it is seasonal to see milk volume increase and the prices of certain commodities come down as arrivals pick up.
At present, the price of skimmed milk is about 15% cheaper as compared to 2011 prices, which were at Rs. 150 per Kg. Even the prices of green bean Arabica coffee has come down by 20% and is now available at Rs. 200 per Kg, while cocoa prices have dropped by 20% in the recent months as well. It is just sugar prices that have remained stable at Rs 35-40 per Kg so far.
