The National Highways Authority of India (NHAI) has announced a 5% increase in toll charges on national highways, set to take effect on Monday, June 3, 2024. Initially planned for April 1, the toll hike was postponed due to the Lok Sabha elections.
This annual adjustment aligns with changes in the Wholesale Price Index (WPI)-based inflation, influencing the user fee rates on national highways. Currently, there are about 855 toll plazas across the country’s highways, with 675 publicly funded and 180 managed by private concessionaires under the National Highways Fee (Determination of Rates and Collection) Rules, 2008.
The toll fee adjustment is a routine measure aimed at addressing inflationary trends while ensuring continued funding for infrastructure maintenance and development. Notably, toll revenue for the fiscal year 2023-24 exceeded Rs 50,000 crore by November 2023.
In addition to the toll hike, consumers will face another increase in expenses as Mother Dairy and Amul have both announced a ₹2 per litre price hike for milk across all variants, effective from Monday. This increase has been attributed to the significant rise in input costs over the past 15 months, impacting operations and production.
For Mother Dairy, the revised prices will specifically impact the Delhi-NCR market. This adjustment reflects the ongoing changes in the cost structures associated with milk production, from feed prices to transportation costs.
Similarly, the Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets products under the Amul brand, has implemented this price hike nationwide. Jayen Mehta, Managing Director of GCMMF, emphasized that the increase is necessary to cope with heightened overall operational and production expenses.
Amul maintains a longstanding policy of returning nearly 80% of the revenue from consumer purchases directly to the milk producers. This ensures that the primary stakeholders—farmers—benefit from the majority of the price paid by end consumers. This price revision aims to sustainably manage the economic aspects of dairy farming and production under the current market conditions.
These simultaneous hikes in toll and milk prices are indicative of the broader inflationary pressures currently affecting various sectors in India. The increase in toll charges, while routine, underscores the need for ongoing infrastructure funding amidst rising costs. Similarly, the hike in milk prices highlights the challenges faced by the dairy industry, particularly in managing production costs.
For consumers, these increases represent additional financial burdens in their daily expenses. The rise in toll charges will affect commuters and logistics companies, potentially leading to higher transportation costs for goods. Meanwhile, the increase in milk prices will directly impact household budgets, as milk is a staple commodity in Indian diets.
The NHAI and the dairy industry have justified these hikes as necessary measures to cope with economic realities. The government may need to consider further support mechanisms for affected sectors and consumers to mitigate the impact of these price increases.
Overall, these developments reflect the ongoing economic adjustments required to maintain service quality and sustainability in the face of inflation and rising costs. As consumers and industries adapt to these changes, the focus will likely remain on balancing affordability with the need for continued growth and stability in essential services and infrastructure.
