Mother Dairy Comes Up With ‘India’s First Self-degradable Milk Pouch’, Says No Price Hike Planned For Now
MD says new pouch naturally degrades in soil by converting into bioavailable wax, which is broken down by microbes into natural elements, reports Surabhi Gupta.
Published : June 2, 2026 at 7:49 PM IST
New Delhi: In a significant step towards reducing plastic pollution, Mother Dairy on Tuesday launched what it described as India's first self-degradable milk pouch, a packaging innovation designed to naturally break down in soil and leave no trace of plastic behind. The company also assured consumers that it has no immediate plans to increase milk prices further despite rising input and packaging costs.
The new biodegradable pouch, developed after more than four years of research and development, will initially be introduced for Mother Dairy’s cow milk variant across Delhi-National Capital Region (NCR) from June 5 - World Environment Day. The variant accounts for nearly 35 per cent of the company’s milk sales in the region.
Mother Dairy and National Dairy Development Board (NDDB) Chairman Meenesh Shah said the innovation was aimed at addressing the growing challenge of plastic waste while maintaining affordability and convenience for consumers.
"This packaging innovation has been designed to naturally degrade in the soil within a few years rather than centuries. Importantly, this transition is being undertaken without any impact on consumer milk prices," Shah said.
According to the company, the pouch transforms into a bioavailable wax during degradation and eventually breaks down into natural elements, eliminating concerns over long-term plastic accumulation in the environment.
Tackling Plastic Waste Without Changing Consumer Habits
Milk pouches remain the most widely used packaging format in India's dairy industry due to their low cost and efficient distribution network. Shah said the challenge was to create an environment-friendly solution without disrupting existing supply chains or increasing costs.
"I don't think there is any other packaging format available that can match the scale of the pouch in terms of distribution efficiency and cost effectiveness. So it was important for us to innovate within the existing ecosystem while ensuring a seamless consumer experience," he said.
The move is particularly significant given India’s status as the world’s largest milk producer, contributing roughly one-fourth of global milk production.
No Further Milk Price Increase Planned
The launch comes less than a month after Mother Dairy increased milk prices by Rs 2 per litre across its liquid milk portfolio, citing rising procurement costs paid to farmers.
However, Shah clarified that consumers should not expect another immediate hike. “We have no intention to further increase the consumer price as of now,” he said. "Packaging material costs have increased significantly because petroleum product prices and logistics expenses have gone up considerably. As of now, we plan to absorb these additional costs and have no plans for any further increase," he maintained.
According to him, most cooperatives pass nearly 75 per cent of the consumer rupee directly to farmers while larger organisations are able to transfer as much as 80-85 per cent back to producers. He rejected criticism that cooperatives retain a disproportionate share of consumer payments, saying audited financial statements clearly show the amount paid to farmers.
Mother Dairy's milk procurement grew by around 3-3.5 per cent last year, and the company continues to witness healthy growth in both milk collection and production, he added.
He noted that organised dairy companies typically implement one price revision annually to offset rising costs. The latest increase, introduced in May, followed a year-long gap and was driven primarily by higher payments to milk producers.
"If there is a situation that arises due to input cost pressures, then we will see. But as of now, the situation is comfortable," Shah added.
Comfortable Milk Supply Despite Monsoon Concerns
Addressing concerns about a potentially below-normal monsoon and its impact on fodder availability, Shah said the dairy sector remains well-positioned.
"There is always a lean and flush season in the country. If there are lower-than-expected rains, there could be some impact on green fodder production in certain regions, but other areas will compensate for that. As of now, we do not see any challenges," he said.
India currently produces around 248-250 million tonnes of milk annually and is expected to record production growth of 4-6% during the current fiscal year. Shah said this growth remains broadly aligned with rising consumer demand and that the country is unlikely to face supply shortages.
He added that government initiatives focused on animal health, breeding, nutrition and the expansion of dairy cooperatives are helping improve productivity and strengthen the sector’s long-term self-sufficiency.
Growth Momentum Continues
Mother Dairy is also witnessing strong demand across product categories. Managing Director Jayatheertha Chary told ETV Bharat that summer sales, including ice creams and seasonal products, have grown by more than 30% compared to the previous year.
The company is targeting overall revenue growth of around 20% and expects turnover to reach approximately Rs 24,000 crore by FY27.
"Packaging material costs have increased significantly, largely because petroleum product prices and logistics expenses have gone up considerably. As of now, we plan to absorb these additional costs and have no plans for any further increase," Chary said.
He said, “Mother Dairy currently processes more than 50 lakh litres of milk every day and sells around 55 lakh litres daily across multiple states. The National Capital Region remains its biggest market, contributing about 58% of total business while the remaining 42% comes from markets outside NCR.”
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