Milk price: Amul, Mother Dairy rates up by Rs. 2/liter
On Tuesday, India's biggest milk suppliers, Amul and Mother Dairy, announced a Rs. 2 hike in their fresh milk prices with effect from Wednesday (August 17). Amul has announced a Rs. 2 increase across markets for all its milk brands: Gold, Shakti, and Taaza. Meanwhile, Mother Dairy said it was increasing prices in Delhi-NCR to factor in increased procurement and input costs. Here's more.
Mother Dairy hikes price by Rs. 2/liter
Mother Dairy's toned milk in Delhi-NCR will cost Rs. 51/liter, double-toned milk will cost Rs. 45/liter, and the full cream variant will cost Rs. 61/liter from Wednesday. The price of token milk has been raised from Rs. 46 to Rs. 48 per liter. Moreover, officials at Mother Dairy said that they were "compelled" to raise the rates of all milk variants, as per PTI.
Why exactly has Mother Mairy increased its prices?
Mother Dairy's increased milk prices in Delhi-NCR are primarily a result of a rise in its "procurement and other input costs." This hike follows the company's Rs. 2 hike in March in Delhi-NCR. As per PTI, Mother Dairy has been witnessing increased input costs in the last five months. While raw milk prices have risen by 10-11%, the cost of feed/fodder has also increased.
Amul to also hike prices from Wednesday
Amul's parent, the Gujarat Cooperative Milk Marketing Federation (GCMMF), has hiked prices in Gujarat, West Bengal, Delhi-NCR, Mumbai, and other markets where its milk is sold. From Wednesday, for 500ml, Amul Gold will cost Rs. 31, Amul Taaza Rs. 25, and Amul Shakti Rs. 28 in Ahmedabad and Saurashtra markets. Amul's statement said this translates into a 4% increase in the maximum retail price.
Why is Amul hiking prices?
The hike is meant to cover Amul's overall cost of operations and milk production, said the official statement. "Cattle feeding cost alone has increased to approximately 20% [from last year]...member unions have also increased farmers' prices in the range of 8-9% over the previous year," Amul said. The GCMMF hopes to sustain milk producers, encouraging them to produce more milk, with the price hike.
