Dairy majors Amul and Mother Dairy have hiked its milk prices by Rs 2 per litre. The prices have been hiked amid increase in overall cost of operation & production.
Gujarat Cooperative Milk Marketing Federation (GCMMF) — marketer and manager of dairy major Amul — and Mother Dairy, two of India's biggest milk suppliers, have raised prices.
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Amul milk prices have been raised by 4 percent or Rs 2 per litre. The revised price will come into effect from August 17 and apply in all markets where Amul sells its fresh milk.
Revised prices of Amul milk variants
|Amul Gold||Rs 31 per litre|
|Amul Taaza||Rs 25 per litre|
|Amul Shakti||Rs 28 per litre|
Mother Dairy, the wholly owned subsidiary of the National Dairy Development Board, raised its milk by Rs 2 per litre with effect from August 17. The new prices will apply to all milk variants in the Delhi-NCR and select markets.
Amul hiked milk prices by Rs 2 per litre last March. Amul said the prices had been hiked amid an increase in the overall cost of operation and production. Cattle feeding costs have gone up by 20 percent year-on-year, the company said. According to the company, over the past year, member unions have increased farmers' prices by 8-9 percent.
Amul, meanwhile, highlighted that the 4 percent increase is lower than average food inflation. As per the latest government data, the inflation in the food index was down to 9.41 percent in July, against 12.41 percent in the previous month.
Amul said that it passes almost 80 paise of every rupee consumers pay for milk and milk products to the milk producers. "The price revision shall help sustain remunerative milk prices to our milk producers and encourage them for higher milk production," Amul said.
Mother Dairy also said that the company had been experiencing a surge in varied input costs, which have increased multifold during the past five months. It added that raw milk's farm prices have firmed up by 10-11 percent.
"Likewise, the cost of feed and fodder has also witnessed a significant rise during the same time due to the heatwave observed earlier in the country and on account of the extended summer season," the company said in a statement.
Mother Dairy said that the surge in farm prices was only being "partially passed on to the consumers", thereby securing the interests of both the stakeholders — consumers and farmers.
"It is important to note that Mother Dairy passes 75-80 percent of the sales realisation from milk towards the procurement of milk. As a responsible organisation, Mother Dairy has consistently worked towards providing remunerative prices to the milk producers, thereby ensuring the sustainability of dairying and availability of quality milk," the dairy major said.
First Published: IST