Gujarat Cooperative Milk Marketing Federation (GCMMF), which sells milk and milk products under the Amul brand, on Tuesday said that price increase of Rs 2 per litre is very small against the increase in the cost of production.
On May 20, Amul said it will increase milk prices by Rs 2 per litre in Delhi NCR, Maharashtra and other states from May 21 due to an increase in production cost.
In an interview to CNBC-TV18, RS Sodhi, managing director, said, "Last price increase was done two years and two months back. This price increase of Rs 2, which is actually 4-5 percent, is a very small price increase against the increase in the cost of production."
"The cost of feeding has increased around 20-30 percent in last one year. If you take cattle feed, where we use De-Oiled Rice Bran (DORB), that has increased by 61 percent over a year, rice polish at 22 percent, molasses 82 percent and corn or maize by 63 percent. So, there was no other alternative than to increase the price," he added.
Further, Sodhi said, "Prices of other dairy products are already increasing. We have increased curd and buttermilk prices about 20 days back. Dairy whitener and baby food prices are also being increased. I think other prices will be also increasing. However, the price increase in products will not be in the ratio to the increase in the price of procurement."
“People who are buying milk from Maharashtra, Uttar Pradesh, Punjab or Haryana, will be impacted maximum,” he added.