Dairy major Amul announced that it will increase milk prices by Rs 2 per litre in Delhi NCR, Maharashtra and other states from 21st May. The reason for price hike was told as the increase in production cost.
Amul also stated that the milk prices were last revised two years back in March 2017. The new price will come into effect from today i.e. May 21 onwards and on all six brands being sold in major markets of Delhi-NCR, Gujarat, West Bengal, Kolkata, Uttaranchal, Maharashtra and other states.
The company also mentioned that the revised price of 500 millilitres (ml) pack of ‘Amul Gold’ in Ahmedabad will be Rs 27, ‘Amul Shakti’ at Rs 25, ‘Amul Taaza’ at Rs 21 and ‘Amul Diamond’ at Rs 28.
The cooperative clarified that the measure was intended at giving milk producers their due, and not because there has been a change in Gujarat cow milk prices. “The increase in milk prices by Rs. 2 per litre has happened after a gap of two years with an aim to provide remunerative milk purchase price to our milk producers owing to a drop in milk production and increase in cost of production,” GCMMF said. Also adding that the measure would motivate milk producers to bring in new livestock and encourage them to remain in the occupation.
Over the last year, cattle feed prices have raised by 15 percent, while green fodder prices have more than doubled this summer. Given this increase in input costs, GCMMF’s member unions have hiked purchase price of milk by Rs 30-50 per kg of fat — a 5-8 percent increase — over the last few months.
Mr Sodhi said, “We expect the purchase price [paid to farmers] to go up again in the next few months. As a cooperative, Amul passes on 80 percent of the price paid by consumers to the milk producers.”