Amul hikes milk prices by ₹2 per litre
Premium- Higher input costs on account of higher transportation costs, packaging and logistics have prompted Amul to raise prices.
PremiumDairy major Gujarat Cooperative Milk Marketing Federation (GCMMF), that markets and sells milk and milk products under Amul brand, on Thursday raised prices of milk by ₹2 per litre pan-India effective 1 July, citing higher input costs.
The price revision is being done pan-India, across markets where Amul is marketing its fresh milk, the dairy cooperative said.
In Ahmedabad the price of Amul Gold will be ₹29 per 500 ml, Amul Taaza will be ₹23 per 500 ml, and Amul Shakti will be at ₹26 per 500ml. The increase of ₹2 per litre translates into a 4% increase in MRP which is much lower than average food inflation, GCMMF said in a statement.
The price hikes in the fresh milk category come after a gap of a year-and-a-half, it said.
However, higher input costs on account of higher transportation costs, packaging and logistics have prompted Amul to raise prices. Large consumer goods companies too have resorted to price hikes over the last several quarters across categories such as edible oil, soap, tea etc. as inflationary pressures remain high.
“It is worthwhile to note that in the last 1.5 years Amul has not made any price revision in its fresh milk category. Since then, due to a rise in costs of energy, packaging, logistics, the overall cost of operation has increased. Considering the rise 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 previous year. Amul as a policy 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," GCMMsaid.
