Amul, Mother Dairy hike milk prices by ₹2 per litre; here’s why

An overall increase in cost of operation and production of milk, increase in farm prices of raw milk and rise in cost of feed and fodder, has made it imperative for the two companies to increase prices

Amul, Mother Dairy price hike
The hike in prices by Mother Dairy and Amul will be effective starting Wednesday (August 17) | File Photo

The Gujarat Cooperative Milk Marketing Federation (GCMMF) which markets milk and other dairy products under the Amul brand, on Tuesday (August 16) said it has increased milk prices by ₹2 per litre. Mother Dairy has similarly hiked its milk prices by ₹2 per litre.

The new prices will be effective starting Wednesday (August 17).

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Amul Gold will be available at ₹31 per 500 ml, Amul Taaza at ₹25 and Amul Shakti at ₹28 per 500 ml.

Mother Diary will sell full-cream milk at ₹61 per litre. The company earlier used to sell it at ₹59 per litre. Toned milk will be available at ₹51 per litre and double toned milk at ₹45 per litre. Cow milk will be sold at ₹53 per litre.

Why an increase in prices?

According to a statement by Mother Dairy: “The company has been experiencing a surge in varied input costs which have increased multifold during the last five months. For instance, the farm prices of raw milk alone have increased by about 10-11 per cent in the said period.”

“Likewise, the cost of feed and fodder has also witnessed a significant rise due to the heatwave observed earlier in the country and on account of the extended summer season. The surge in farm prices is only being partially passed on to the consumers, thereby securing the interests of both the stakeholders, consumers and farmers,” the company said.

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A statement by GCMMF said that they have decided to increase the milk prices by ₹2 per litre in markets of Ahmedabad and Saurashtra of Gujarat, Delhi-NCR, West Bengal, Mumbai and all other markets where Amul is marketing its fresh milk effective from August 17, 2022.

“The increase of Rs 2 per litre translates into a four per cent increase in MRP which is lower than average food inflation. This price hike is being done due to the increase in the overall cost of operation and production of milk,” the GCMMF said.

“The cattle feeding cost alone has increased to about 20 per cent compared to last year. Considering the rise in input costs, our member unions have also increased farmers’ price in the range of eight-nine per cent over the previous year,” it added.

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The GCMMF sells about 150 lakh litres of milk per day. Of this, Gujarat contributes around 60 lakh litres, Delhi NCR around 35 lakh litres and Maharashtra around 20 lakh litres.