Amul, Mother Dairy to hike milk prices by ₹2 per litre from August 17

Leading milk suppliers Amul and Mother Dairy will increase milk prices by ₹2 per litre with effect from August 17 on account of rising input costs.

This is the second hike by Amul and Mother Dairy in nearly six months. At the beginning of March, both had increased milk prices by ₹2 per litre.

The Gujarat Cooperative Milk Marketing Federation (GCMMF), which sells milk and other dairy products under the Amul brand, on Tuesday said it has decided to increase the milk prices by ₹2 per litre in Ahmedabad and Saurashtra of Gujarat, Delhi-NCR, West Bengal, Mumbai and other markets effective from August 17.

The hike of ₹2 per litre will translate into a 4% increase in MRP (Maximum Retail Price) which is lower than the average food inflation, it said in a statement.

“This price hike is being done due to an increase in overall cost of operation and production of milk. The cattle feeding cost alone has increased to approximate 20% compared to last year. Considering the rise in input costs, our member unions have also increased farmers’ price in the range of 8-9% over the previous year,” GCMMF said.

The co-operative passes on almost 80 paise of every rupee paid by consumers for milk and milk products to the milk producers.

The price revision shall help in sustaining remunerative milk prices to our milk producers and to encourage them for higher milk production, the GCMMF said.

Separately, Mother Dairy announced that it will hike milk prices in the Delhi-NCR (National Capital Region) by ₹2 per litre from Wednesday.

Mother Dairy is a leading milk supplier in the Delhi-NCR market and sells more than 30 lakh litres per day in poly packs and through vending machines.

A company official on Tuesday said it is “compelled” to raise its liquid milk prices by ₹2 per litre with effect from August 17, 2022. The new prices will be applicable for all milk variants.

Full cream milk will cost ₹61 per litre from Wednesday, up from ₹59 per litre.

Prices of toned milk will increase to ₹51 while double toned milk will rise to ₹45 per litre. Cow milk price have been hiked to ₹53 per litre.

Bulk vended milk (token milk) price has been raised to ₹48 from ₹46 per litre.

The company has witnessed an increase in input costs in the last five months, the official said.

For instance, the farm prices of raw milk have spiked by about 10-11%.

Likewise, the cost of feed and fodder has also witnessed a significant rise due to the heat wave and extended summer season.

According to the official, the surge in farm prices is only being partially passed on to the consumers, thereby securing the interests of both the stakeholders — consumers and farmers.

The company spends around 75-80% of the sales realisation from milk towards the procurement of milk from the farmers.

GCMMF said that Amul full cream milk will be available at ₹62 per litre in Ahmedabad, Kolkata, Delhi-NCR and Mumbai while toned milk will be sold at ₹50 in Ahmedabad and ₹52 each in the remaining three markets.

Amul’s double toned milk price has been increased to ₹44 in Ahmedabad and ₹46 per litre in Kolkata and Delhi-NCR.

GCMMF sells more than 150 lakh litres of milk per day and out of the total quantity, Delhi-NCR accounts for nearly 40 lakh litres per day.

India is the world’s largest milk producer.