The impending increase in milk prices, set to begin on August 1, is likely to result in higher costs for eating out in hotels and purchasing bakery products. Hoteliers and bakeries have already raised their food prices, attributing the surge to the rising costs of dal, rice, and vegetables.

Bakery items, such as bread, are expected to see a significant price increase since milk is a fundamental ingredient in most of their products, including cream. The Food Safety and Standards Authority of India (FSSAI) regulations leave little room for alternatives, making it inevitable for bakeries to raise their prices to meet the required milk content in milk bread.

Hotels have already increased prices for certain food items due to the escalating costs of dal and vegetables. As milk and dairy products prices rise, there is a possibility that the prices of other food items in hotels may also go up. Many hotels are contemplating raising the price of a cup of coffee/tea from INR 12 to INR 15, and a cup of tea priced at INR 15 might increase to INR 17.

Hoteliers and bakers are navigating the need for price adjustments without causing significant inconvenience to customers, especially the middle-class segment. They are aiming to strike a balance between avoiding losses and ensuring customer retention.