KKN Gurugram Desk | In a fresh setback for consumers already struggling with inflation, residents of Bihar woke up to increased prices of Sudha milk, the state’s most widely consumed dairy brand. The Bihar State Milk Cooperative Federation (COMFED) announced a price hike of ₹2 to ₹3 per liter, effective immediately across the state.

The increase affects all major variants of Sudha milk, including Sudha Gold, Toned, Double Toned, Shakti, and Cow Milk, prompting concerns over the rising cost of daily essentials in one of India’s economically sensitive regions.

New Sudha Milk Prices (as of May 2025)

Additionally, half-liter pouches have also seen a proportional rise, with a ₹1 increase per unit.

Three-Year Trend: ₹12 per Liter Increase Since 2022

This is not a one-time surge. In the past three years, the price of Sudha milk has risen by ₹12 per liter, marking a nearly 25% hike across variants.

Dairy economists warn that this consistent upward trend reflects systemic inflationary pressures, especially in agricultural inputs like cattle feed, transportation, and labor wages. It also aligns with national milk inflation data tracked by the Retail Inflation Index.

Why Have Prices Increased? Official Explanation from COMFED

According to senior officials at COMFED, the decision to raise prices was taken after careful evaluation of operational costs and supply chain strain, particularly due to:

• Increased cost of animal fodder and supplements

• Rising fuel and transportation expenses

• Pressure from dairy farmers demanding higher procurement rates

• Sustainability challenges in the cooperative model

“The price adjustment ensures that milk producers get fair compensation amid increasing input costs. It was a necessary decision to protect both supply and farmer income,” a senior COMFED spokesperson said.

Farmer’s Perspective: Relief Amid High Fodder Prices

For dairy farmers, especially small-scale producers in districts like Nalanda, Muzaffarpur, and Samastipur, the price revision offers some financial relief. Many had long demanded better margins, as feed costs have surged over 40% since last year due to drought conditions in parts of North India.

“Fodder is expensive, and without better rates for our milk, we were running at a loss. COMFED’s decision helps, but it’s not enough unless input subsidies are provided,” said Ramesh Kumar, a dairy farmer from Begusarai.

Urban Consumer Reaction: Monthly Budgets Under Pressure

The price hike has triggered strong reactions from urban and semi-urban consumers, who rely on packaged milk for daily consumption. In cities like Patna, Gaya, Bhagalpur, and Darbhanga, milk is a staple not just for households but also for small businesses like tea shops, sweet vendors, and hotels.

“In a household of five, we consume about 2 liters daily. This hike adds ₹180–₹200 to our monthly milk expense alone,” said Neha Sinha, a schoolteacher in Patna.

Many worry that this hike will trigger a domino effect, increasing the prices of dairy-based products like paneer, curd, and sweets.

Milk as a Political Issue: Opposition Reacts

The announcement has also taken a political turn, with opposition parties slamming the Nitish Kumar-led government for failing to control inflation in essential commodities.

“This is the third hike in less than two years. What is the government doing to protect the common man from price shocks?” questioned an RJD spokesperson during a press briefing.

Meanwhile, the Bihar government has avoided direct commentary, maintaining that pricing decisions lie with COMFED, which operates as an autonomous cooperative body.

Comparison with Other States and Brands

While Bihar consumers grapple with higher rates, milk prices in neighboring states like Uttar Pradesh and Jharkhand have also seen moderate hikes. However, Sudha milk remains cheaper than private brands like Amul in Delhi or Mother Dairy in NCR, where full-cream milk sells at ₹66–₹68 per liter.

Still, for a state where the per capita income is below national average, even minor increases impact millions of middle- and lower-income families.

Economic Implications: How Milk Price Impacts CPI and Inflation

Milk and milk products form a core component of India’s Consumer Price Index (CPI). Price changes in dairy often directly impact overall food inflation, especially in states with large rural populations.

Economists warn that the latest hike by COMFED, if followed by other cooperatives, could nudge CPI inflation upwards, particularly in food-sensitive quarters like April–June.

“Milk is not just a food product—it’s a nutrition source. When it becomes unaffordable, the impact is felt across health, education, and social sectors,” said Dr. Arvind Rao, professor of economics at Patna University.

Impact on School Nutrition and Welfare Schemes

The milk price hike may also burden government welfare schemes, including:

• Midday Meal Programs in schools

• ICDS (Integrated Child Development Services) under Anganwadi

• State nutrition drives for women and children

If procurement costs increase, either quality or quantity may be impacted unless budgets are revised.

Retailers and Distributors Speak Out

Local milk distributors say that while price hikes are tough on customers, the supply chain is also under pressure. Rising fuel costs and increased maintenance of chilling centers have pushed many to reduce delivery areas.

“We understand consumer anger, but we are not profiting from this hike. The cost of distribution has also gone up,” said a vendor in Patna City area.

Nutritionists suggest that families struggling with milk inflation may explore nutritional substitutes like:

• Soy milk or plant-based milk (costlier, but long shelf life)

• Homemade curd or paneer from bulk milk purchases

• Milk dilution for tea and cooking, retaining undiluted milk for children

However, these are short-term adjustments, and there’s no real substitute for affordable, fresh milk.