Amul and Mother Dairy milk prices increase by Rs 2 per litre

The Gujarat Cooperative Milk Marketing Federation (GCMMF), Amul and Mother Dairy have increased fresh milk prices by two rupees per litre from Wednesday 17 August 2022.

GCMMF, the marketer of milk and milk products under the brand name Amul, has decided to increase the milk prices by Rs 2 per litre in the 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 17 August 2022. In the Ahmedabad and Saurashtra markets, the price of Amul Gold will be Rs 31 per 500 ml, Amul Taaza Rs 25 per 500 ml, and Amul Shakti Rs 28 per 500ml.

According to a press release issued by Amul, it has increased the price to meet the operational cost. The increase of Rs 2 per litre translates into a 4 per cent increase in MRP, which is lower than average food inflation.

Talking to Rural Voice, Manish Bandlish, Managing Director, Mother Dairy said, "We have increased fresh milk price by Rs 2 per litre for our milk brands." According to a press release issued by Mother Dairy, it has revised milk price by Rs 2 per litre with effect from 17 August 2022.

Revised prices of Amul milk brands 

According to the press release, the farmers' expenditure on cattle feed has gone up by 20 per cent in the last one year. This price hike is being done due to an increase in the overall cost of operation and production of milk. Cattle feeding cost alone has increased by approximately  20 per cent compared to last year.

Considering the rise in input costs, the member unions have also increased farmers’ prices in the range of 8-9 per cent over the previous year. Amul has a policy that passes on almost 80 paise of every rupee paid by consumers for milk and milk products to the milk producers. The price revision shall help in sustaining remunerative milk prices to its milk producers and encourage them to produce more milk. 

According to a press release issued by Mother Dairy, it has revised milk price by Rs 2 per litre with effect from 17 August 2022. The new prices will be applicable for all milk variants. 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 have alone firmed up by about 10-11 per cent in the said period. 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 surge in farm prices is 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 around 75-80 per cent of the sales realization from milk towards the procurement of milk. As a responsible organization, Mother Dairy has consistently worked towards providing remunerative prices to the milk producers, thereby ensuring the sustainability of dairying and the availability of quality milk.