Managing director RS Sodhi said the hike in the milk price became necessary due to the rise in food inflation.
Amul milk will be dearer by ₹2 per litre from July 1 across all the country, the Gujarat Cooperative Milk Marketing Federations announced on Wednesday. The price rise will be effective on all brands of Amul milk, including Gold, Taaza, Shakti, T-special, as well on cow and buffalo milk etc. The price is being hiked after a gap of nearly one year and seven months, officials said. An increase in the production cost is the reason behind the price rise, the company said.
“Prices of Amul milk will be increased by ₹2 per litre across India from tomorrow. The new prices will be applicable on all Amul milk brands like Gold, Taaza, Shakti, T-special, as well on cow and buffalo milk,” said RS Sodhi, Managing Director, GCMMF, which markets Amul brand of milk and dairy products. Sodhi said the hike in the milk price became necessary due to the rise in food inflation. “Additionally, the cost for packaging has gone up by 30 to 40 per cent, the transportation cost by 30 per cent, and the energy cost by 30 per cent, which led to the increase in the input cost,” he said.
Though the price hike may come across as a jolt to many consumers amid the soaring price of fuel and vegetables, the company said that the increase is much lower than the average food inflation. “The increase of ₹2 per litre translates into a 4% increase in MRP, which is much lower than average food inflation,” the company statement read.
“Given the increase in input costs, our member unions have also increased farmers’ price in the range of ₹45 to ₹50 per kg fat, which is more than 6% over the previous year,” the company said.
The price rise in turn will benefit milk producers as it is the company’s policy to pass on almost 80 paise of every rupee paid by consumers for milk to the milk producers.
Milk price in the country was last revised in December 2019 when Amul raised the price by ₹3 per litre in Gujarat, Delhi-NCR, West Bengal and Maharashtra. At the same time, Mother Dairy too announced an increase in milk prices by ₹3 per only in Delhi-NCR owing to a lower supply.Amul’s business grew during the Covid-19 pandemic-induced lockdown as the consumption of milk products has seen a steep rise during the period. In April 2020, Amul’s milk cooperatives sold around 255 to 260 litres of milk every day, reports said.
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