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Amul, India's leading dairy cooperative, has announced a price increase of ₹2 per liter across all variants of its milk products, effective from June 3, 2023.
The Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets Amul products, attributed the price hike to rising operational and production costs.
The revised prices will see the 500 ml Amul buffalo milk pouch increase to ₹36, Amul Gold milk to ₹33, and Amul Shakti milk to ₹30 per liter.
Jayen Mehta, Managing Director of GCMMF, stated that the hike is necessary to ensure fair compensation for farmers who have been facing higher production costs.
Mehta emphasized that the price increase of 3-4% is lower than the current food inflation rate and that Amul has not raised fresh pouch milk prices in major markets since February 2023.
GCMMF highlighted that Amul's pricing policy allocates approximately 80% of consumer payments to milk producers, supporting their livelihoods and encouraging increased milk production.
The price hike is expected to impact consumers across India, leading to higher expenses for households and businesses that rely on Amul milk products.
Dairy industry analysts anticipate that the move may prompt other milk producers to consider similar price adjustments, potentially contributing to a broader increase in milk prices in the country.
The decision also underscores the challenges faced by the dairy industry amid rising costs, including animal feed, transportation, and labor.
Consumers may consider exploring alternative milk products or adjusting their consumption patterns to mitigate the impact of the price increase on their budgets.
Source: Amul hikes milk price by ₹2 per litre across all variants