Liquid milk prices surge again in Bangladesh straining household budgets

INDIA –  The price of liquid milk in Bangladesh has increased once more, adding pressure to consumers already facing high inflation.

Leading producers, including the state-run Bangladesh Milk Producers’ Co-Operative Union Limited (Milkvita), have raised the maximum retail price by Tk 10 per litre and Tk 5 per half-litre pack, a move that has sparked concerns about affordability for many families.

According to an official from Milkvita, the price hike took effect on March 21.

The cost of a half-litre packet of milk rose by 10 percent, from Tk 50 to Tk 55, while a one-litre packet increased by 11.11%, from Tk 90 to Tk 100.

This follows similar increases by private companies like Aarong, a brand of BRAC Dairy, and Pran in November 2024, when they also raised prices by Tk 10 per litre and Tk 5 per half litre.

The rising costs have left many households struggling to cope.

Kiron Mia, a resident of Pallabi in Mirpur, expressed his frustration, saying, “For a long time, prices of many items have been going up. Now, with milk prices rising again, our expenses will climb even more.” 

“The government could have avoided this during such high inflation.”

Analysts highlight the broader economic context, noting that inflation, though slightly lower in February, has stayed above 9% for 24 months, eroding purchasing power.

Sabbir Hossain, a retail trader at Tejturi Bazar in Farmgate, Dhaka, shared an example of the impact, stating that a customer who intended to buy 5 litres of milk reduced their purchase to 4 litres due to the price increase.

Jahidul Islam, managing director of Milkvita, explained the company’s decision, saying, “For the past four to five months, we were selling each litre at a loss of about Tk 8.” 

“We raised prices for farmers several times but couldn’t adjust retail prices until now.”

He added that a proposal sent to the ministry months ago was finally approved last Thursday.

Milkvita’s competitors adjusted their prices earlier, reaching Tk 100 per litre in November 2024.

Islam noted that the company sold only 130,000 litres yesterday, down from its usual 225,000 litres daily, as farmers can fetch higher prices in local markets.

Mohammad Anisur Rahman from BRAC Enterprises pointed to rising livestock feed costs as a key factor, with raw material expenses like packaging and spare parts jumping 20 to 40 percent over two years.

Kamruzzaman Kamal of Pran-RFL Group echoed this, linking the retail price hike to increased production costs for farmers.

According to the Department of Livestock Services, Bangladesh produces 9.9 million tonnes of milk annually against a demand of 15 million tonnes, with the shortfall partly met by importing 0.12 to 0.14 million tonnes of powdered milk.

As prices climb, the gap between supply and affordability continues to widen for many.