Amul, Mother Dairy raises milk prices by Rs 2 per litre

The new prices will be applicable for all milk variants, Mother Dairy said in a statement on Tuesday.

Amul and Mother Dairy has raised the prices of milk by Rs 2 per litre with effect from Wednesday. "Mother Dairy is compelled to raise its liquid milk prices by Rs. 2/litre with effect from August 17, 2022. The new prices will be applicable for all milk variants," it said in a statement on Tuesday.

It said the company has been experiencing a surge in input costs which have increased multifold during the last five months.

"For instance, the farm prices of raw milk have alone firmed up by about 10-11 per cent in the said period. Likewise, the cost of feed and fodder has also witnessed a significant rise during the same time due to the heatwave observed earlier in the country and on account of the extended summer season," the statement added.

It claims 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.

"As a responsible organisation, Mother Dairy has consistently worked towards providing remunerative prices to the milk producers, thereby ensuring the sustainability of dairying and availability of quality milk," it added.

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It is important to note that Mother Dairy passes around 75-80 per cent of the sales realization from milk towards the procurement of milk.

Earlier today, Amul too decided to increase the prices of milk by Rs 2 per litre with effect from Wednesday because of rising input costs.

Post the revision, the price of Amul Gold in Ahmedabad and Saurashtra markets will be Rs 31 per 500 ml, Amul Taaza will be Rs 25 per 500 ml, and Amul Shakti will be at Rs 28 per 500ml, it said in a statement.

The increase of Rs 2 per litre, Amul said in the statement, translates into a 4 per cent increase in maximum retail price (MRP) which is lower than average food inflation.

"This price hike is being done due to an increase in an overall cost of operation and production of milk. The cattle feeding cost alone has increased to approximately 20 per cent compared to last year. Considering the rise in input costs, our member unions have also increased farmers' prices in the range of 8-9 per cent over the previous year," the statement added.

Amul passes 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 statement said.

The Gujarat Cooperative Milk Marketing Federation (GCMMF) is the parent firm of the dairy brand Amul.

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