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State-run Bangladesh Milk Producers’ Cooperative Union Limited (Milk Vita) has increased the retail price of its pasteurised liquid milk by Tk10 per litre, raising the price from Tk100 to Tk110.
The new price took effect on August 5.
Milk Vita authorities said the hike was driven mainly by a sharp increase in production costs.
The prices of cattle feed, packaging materials and transportation have risen, while higher fuel, gas and electricity costs have also pushed up operating expenses.
The company estimates that its cost of producing each litre of milk has increased by Tk11 to Tk11.50.
Another major factor is the price paid to dairy farmers. Milk Vita said private dairy companies have been offering farmers higher prices amid rising feed and transport costs, causing Milk Vita’s milk collection to decline.
To retain farmers and ensure a steady supply, the cooperative raised its purchase price by Tk3 per litre from August 1.
The price increase has also been extended to other Milk Vita dairy products, according to company sources.
Meanwhile, major private brands such as Pran and Farm Fresh have not yet raised their liquid milk prices.