Amul, marketed by the Gujarat Cooperative Milk Marketing Federation (GCMMF), has announced a price hike for its fresh milk pouches. Effective from 3 June, 2024, the price of Amul milk will increase by ₹2 per litre across all markets in India. This decision is in response to rising operational and production costs, GCMMF stated in a press release.
The hike will affect various variants of Amul milk. The price of 500 ml Amul Gold milk will increase to ₹33, while 500 ml Amul Shakti milk will now cost ₹30. The price for 500 ml Amul buffalo milk has been revised to ₹36. Consequently, the cost of a one-litre packet of Amul Gold will rise from ₹64 to ₹66 – a 3-4% increase in the Maximum Retail Price (MRP). This percentage is lower than the average food inflation rate.
GCMMF’s Managing Director, Jayen Mehta, highlighted that the last price hike occurred in February, 2023 and that this latest adjustment is essential to compensate farmers for their increased production costs. “Our member unions have increased farmers’ prices by approximately 6-8% compared to last year,” Mehta added.
Amul’s Explanation
The primary reason for the price increase is the overall rise in the cost of milk production and operation. According to GCMMF, Amul follows a policy where almost 80 paise of every rupee paid by consumers is passed on to milk producers. This policy aims to ensure that milk producers receive decent prices and are encouraged to increase milk production. “The price revision will help in sustaining remunerative milk prices to our milk producers,” the statement read.
Regional Development
In a related development, the Kerala Co-operative Milk Marketing Federation (KCMMF), known by its brand Milma, is working to strengthen the region’s cooperative dairy sector and achieve self-sufficiency in milk production. Milma Chairman K. S. Mani outlined these plans in an article marking World Milk Day on 1 June. He emphasized the importance of increasing productivity and supporting dairy farmers who are burdened by increased input costs.
Following Amul’s announcement, other major milk suppliers have also adjusted their prices. Mother Dairy has increased milk prices by ₹2 per litre in the Delhi-NCR region and other markets. This move, effective from 3 June, 2024, is also attributed to rising input costs over the past 15 months. Mother Dairy’s revised prices now stand at ₹68 per litre for full cream milk, ₹56 for toned milk and ₹50 for double-toned milk.
Mother Dairy, which sells 35 lakh litres of milk per day in Delhi-NCR, noted that it had last revised its prices in February 2023. The company stated that despite the increased milk procurement prices, consumer prices were kept stable until now; the recent heat stress across India is expected to further impact milk production, warranting this price adjustment.
