The prices of Amul milk have gone up by Rs 2 per litre. The prices will come into effect from March 1. Full-cream milk price has gone up from Rs 58 to Rs 60 per litre, toned milk from Rs 48 to Rs 50 per litre and double-toned milk from Rs 42 to Rs 44 per litre.
The Gujarat Cooperative Milk Marketing Federation (GCMMF) announced the price hike on Monday. The reason for the price hike has been attributed to the rise in costs. GCMMF says that a hike of Rs 2 implies only a 4 per cent increase. This is much less than the average food inflation.
Speaking about the price hike, a top Amul official said to Rural Voice, “This is the third hike in three years. Last time in July 2021, too, prices had been hiked by Rs 2 per litre only.” He said that the production cost had increased significantly of late. If we compare it to the US and other countries, the milk price hike is much less here. Also, milk inflation is much less in comparison to other products in domestic inflation.
GCMMF said in a statement, “There has been a hike of only 4 per cent per annum in the prices over the last two years. This price hike is being done due to (the) rise in costs of energy, packaging, logistics, cattle feeding cost — thus the overall cost of operation and production of milk has increased. Considering the rise in the input costs, our member unions have also increased farmers' price in the range of ₹35 to ₹40 per kg fat, which is more than 5 per cent over the previous year.”
According to the statement, “As a matter of principle, Amul passes on almost 80 paise of every rupee paid by consumers to the milk producers. The price revision shall help in sustaining remunerative milk prices to our milk producers and to encourage them for higher milk production.”
There is now the possibility of other milk companies, too, hiking the prices in the wake of this price hike by Amul.