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Retailers note a decline in sales while producing companies claim the price adjustment is “reasonable”
Published : 27 Apr 2025, 02:33 AM
The first ripple came last November when BRAC Enterprises’ brand Aarong Dairy abruptly raised the price of its packaged liquid milk—marking a Tk 10 surge per litre and Tk 5 on half-litre packs, setting the tone for a wave of hikes across the market.
Other brands, including PRAN, quickly followed suit, similarly adjusting their prices upwards.
Most recently, on Mar 21, the state-run Milk Producer’s Co-Operative Union Limited, Milk Vita, also hiked its prices.
A market visit shows Arong’s standardised (partially processed) milk now sells at Tk 55 for half a litre and Tk 100 per litre while its pasteurised (fully processed) variant is tagged at Tk 60 and Tk 105 respectively.
The 250g pack has also climbed from Tk 25 to Tk 30. Comparable price jumps are visible across competing brands.
Milk Vita’s half-litre pack has gone from Tk 50 to Tk 55, and its one-litre product from Tk 90 to Tk 100—bringing it in line with Arong’s current rates.
As milk remains a nutritional staple across all age groups, the sustained price rise has prompted many consumers to scale back purchases.
Retailers, too, report a noticeable dip in daily sales.
The selling companies, however, insist that the price adjustments have been made “reasonably”.
In 2018, the price of one litre of pasteurised liquid milk ranged from Tk 60 to Tk 65.
In 2021, the price was between Tk 70 and Tk 75.
Before the latest price hike, the cost of one litre of milk stood at Tk 90.
Thus, within less than a year, the price has climbed by Tk 10 per litre.
WHAT COMPANIES ARE SAYING
Milk Vita claims it was forced to raise prices with ministry approval after incurring heavy monthly losses, according to its Managing Director Zahidul Islam.
Speaking to bdnews24.com, he said: “We last adjusted the price of milk and dairy products in 2022.
“We purchase directly from farmers, and in the past two years, we have increased procurement rates four times—by a total of Tk 13 per litre.”
When asked what farmers currently receive, Zahidul said: “The rate depends on fat percentage, ranging from 3 to 7 percent.
“If the milk contains 4 percent fat on average, we pay Tk 58 per litre. For cooperatives that bring milk from distant areas, we cover transportation, which adds over Tk 3 per litre.
“So, with transport, the cost per litre exceeds Tk 61. When factory processing is added, the cost climbs to over Tk 82. Yet we are supplying to distributors at Tk 78.”
He added that ahead of Ramadan, Milk Vita submitted a price adjustment request to the ministry, citing examples from private companies.
“Initially, the ministry refused, and we were losing Tk 20–25 million every month. Once approval was granted, we raised prices.”
PRAN’s Marketing Director Kamruzzaman Kamal said rising production costs at the farm level left no alternative but to increase consumer prices.
“Farmers were struggling due to higher feed costs, and they demanded better prices. To meet those demands, we had to revise retail rates as well,” he added.
Attempts to reach BRAC Enterprises' Senior Director Anisur Rahman were unsuccessful.
PRODUCTION STATUS, DEMAND LEVELS
According to the Department of Livestock Services, there are currently around 2 million dairy farmers in Bangladesh.
In the fiscal year 2012-13, the country produced about 5.07 million metric tonnes of milk.
Over the next three fiscal years, production increased to over 7.2 million metric tonnes.
By FY 2016-17, production rose to 9.2 million metric tonnes.
In FY 2021-22, milk production reached 13.07 million metric tonnes, and in 2022-23, it grew to nearly 14 million metric tonnes.
By 2024, production has further increased to 15.25 million tonnes.
In contrast, the annual demand for liquid milk in the country exceeds 15.66 million metric tonnes. The shortfall is met through the import of powdered milk.
Several companies process around 800,000 to 900,000 tonnes of milk annually to produce different dairy products.
The remaining milk is sold by farmers to sweet shops and in open markets.
At Mohakhali’s Saattola market, a vendor Md Zahid was selling bottled milk.
When asked about prices, he said: “I buy milk from a farmer in Aftabnagar area and sell it here.
Depending on market conditions, the price ranges between Tk 70 and Tk 80 per litre.”
Speaking about prices, Al Mahmud, the proprietor of Atik Dairy Farm in Sirajganj’s Shahjadpur said: “We supply milk to Milk Vita.
“My farm produces between 200 and 350 litres of milk daily. We usually sell it for between Tk 58 and Tk 61 per litre, although the market price sometimes falls.”
He, however, could not specify the reasons behind the occasional market downturn.
CONSUMERS BUYING LESS AMID PRICE HIKE
On Monday night, housewife Jesmin Begum went to buy milk at a confectionery shop “Shakil Store” near Niketan Bazar gate.
She usually buys Milk Vita brand milk and was unaware of the recent price hike. Upon learning about it, she purchased two litres instead of her usual three.
When asked, Jesmin said: “I used to buy three packets of one-litre milk at Tk 90 each. Today I found it has gone up to Tk 100. So, I bought less.
“Everything just keeps getting more expensive.”
Shakil Hossain, the shop’s vendor, said powdered milk from different brands is currently selling at Tk 650 to Tk 850 per kg in the market.
He added, “Around last December, almost all companies raised powdered milk prices by Tk 25 to Tk 30 per kg at the retail level.
“Since then, prices have remained stable. But, due to the earlier hike, milk sales have dropped. Previously I used to stock many brands, but now I sell only two.”
According to Faruk Hossain, a grocer at Mohakhali’s Saattola market, the price of 400g canned milk has increased by Tk 150 to Tk 200 over the past year.
“Prices of dairy products have risen accordingly.”
A market survey found that half a kilogramme of sweet yoghurt now costs Tk 130 to Tk 150, compared with Tk 80 in 2021 and Tk 65 in 2018.
Prices of other dairy products, including sweets, ice cream, butter, Labang (fermented milk drink), and flavoured milk, have also increased.
REDUCED INTAKE RAISES MALNUTRITION CONCERNS
According to the World Health Organisation (WHO) standards, an individual needs to drink 250mm of milk daily to meet full nutritional requirements.
Nutritionists stress that milk should be included not only for children’s physical growth but also in the diets of pregnant women, adults and the elderly.
Public health expert Dr Lelin Choudhury said, “Milk is considered a complete food because it contains proteins, calcium, and other essential elements that the human body always needs.
“It is particularly crucial for children during their growth phase and for pregnant women. Regular consumption of one glass of milk during pregnancy can replenish the calcium deficiency that occurs.
“Milk also acts as an important source of protein.”
He added, “Among the basic nutrients needed in our diet, milk fulfils a significant portion. If milk prices rise, people's consumption declines, leading to a nutritional imbalance.”
[Writing in English by Shiekh Fariha Bristy]
