After recent price hikes by Amul and Mother Dairy, Uttar Pradesh’s major dairy brand, Parag, has announced a price hike of ₹2 per litre across its entire milk portfolio. The revised rates are set to take effect from the evening of May 15, 2026.
While this move aligns with the national trend of rising dairy costs, Parag has strategically maintained its position as a more affordable alternative in the state.
Parag Revised Rate Card (Effective May 15)
Despite the hike, Parag remains approximately ₹1 per litre cheaper than its competitors, Amul and Mother Dairy.
| Variant | Pack Size | Old MRP | New MRP |
| Parag Gold (Full Cream) | 1 Litre | ₹69 | ₹71 |
| Parag Gold (Full Cream) | 500 ml | ₹35 | ₹36 |
| Standard Milk | 500 ml | ₹32 | ₹33 |
| Toned Milk | 1 Litre | ₹57 | ₹59 |
| Tea-Special Milk | 1 Litre | ₹64 | ₹66 |
Bulk Pricing:
- The 6-litre Parag Gold pack has increased from ₹420 to ₹425.
- The 5-litre Standard Milk pack saw the highest jump, rising by ₹10 to ₹300.
The Economic Drivers: Why Now?
The timing of this hike is no coincidence. It is the result of a “domino effect” in the dairy industry combined with specific logistical pressures.
1. The Transport Burden
A senior Parag official revealed that 30% of total operational costs are tied to transportation. This includes the fuel required to collect milk from rural dairy farmers and the logistics of delivering fresh pouches to urban centers. With global energy costs remaining high due to international conflicts, these margins have been under constant pressure for months.
2. The “Price Umbrella” Effect
As Amul and Mother Dairy raised their prices on May 14, it created the necessary room for regional players like Parag to adjust their rates without losing their competitive “value-for-money” status.3. Rising Input Costs
Similar to Amul’s statement, the underlying cause for the revision includes:
- Cattle Feed: Rising fodder prices due to climatic stress.
- Packaging: Increased costs of milk packaging film.
- Procurement: Paying higher rates to farmers to ensure a steady supply during a difficult summer season.
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Comparison: Parag vs. Competition
In the competitive Uttar Pradesh market, Parag’s decision to keep its Full Cream milk at ₹71 (while Amul/Mother Dairy are at ₹72) is a move to retain its massive middle-class and rural consumer base.
Summary for Households
For families in Uttar Pradesh, the combined hikes of the last 48 hours mean that the daily milk bill has officially entered a new price bracket. With food inflation already exceeding 4% in April 2026, this ₹2 per litre increase—though appearing small—is another contributor to the rising cost of living in the state. Consumers may want to look toward bulk packs or toned variants to mitigate the impact on their monthly budgets.
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