Amul milk prices hiked by Rs. 2/liter from tomorrow
The Gujarat Cooperative Milk Marketing Federation (GCMMF) has hiked Amul milk prices by Rs. 2 per liter in India effective Tuesday. The hike translates to a 4% MRP increase, which is much lower than average food inflation, the GCMMF argued. "The price revision shall help in sustaining remunerative milk prices to our milk producers and to encourage them for higher milk production," it said.
Why does this story matter?
This is the second time in this financial year that Amul has increased milk prices. It had last hiked rates in June 2021, when the price was increased by Rs. 2 per liter. Amul's decision is likely to cause other large dairy processors to also increase their prices. India is notably the world's biggest milk consumer reportedly drinking 83 million metric tons in 2021.
What are the new milk rates?
In Gujarat's Ahmedabad and Saurashtra markets, the new milk rates will be as follows: Rs. 30 per 500 ml of Amul Gold; Rs. 24 per 500 ml of Amul Taaza; and Rs. 27 per 500 ml of Amul Shakti. Now, packets of Amul Taaza and Amul Gold will be sold at Rs. 48 per liter and Rs. 60 per liter, respectively.
GCMMF says milk production costs have risen
The GCMMF said in a statement on Monday that increased costs of energy, packaging, logistics, and cattle feeding costs have pushed up the overall cost of milk production. It said their member unions have also increased farmers' prices in the range of Rs. 35-40 per kg fat, up by over 5% over the previous year. Milk producers get 80% of Amul's revenue, it added.
