Amul, the renowned dairy brand in India, anticipates price stability in its products this year, owing to favourable factors such as timely monsoon rains in Gujarat and the onset of the milk procurement season. Jayen S. Mehta, the Managing Director of the Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets dairy products under the Amul brand, made this reassuring statement on Wednesday.
Mehta expressed optimism about the current situation, attributing it to the timely monsoon in Gujarat, which has eased the pressure on producers concerning feed and fodder costs. Furthermore, with the advent of the milk procurement season, Amul does not foresee any price hikes in the near future.
Responding to inquiries about the company’s investment plans, Mehta disclosed that they are committed to investing nearly Rs 3,000 crore annually for several years to come. He revealed plans for a new dairy plant in Rajkot with a capacity exceeding 20 lakh liters per day, in addition to new packaging and processing units. The Rajkot project alone is expected to receive an investment of at least Rs 2,000 crore, while various other projects are also in progress.
Regarding international trade agreements, particularly with trading partners like the European Union (EU), seeking import duty concessions in the dairy sector through free trade agreements (FTAs), Mehta emphasized the significance of milk as a livelihood source for over 10 crore families in India, with the majority being small and marginal farmers. He explained that if developed countries were to inundate India with their dairy surpluses at lower prices, it would adversely affect the livelihoods of these small-scale farmers.
Mehta pointed out that while India allows the import of dairy products like European cheese at a minimal 30 percent duty, these countries do not reciprocate in a similar manner. The US, for instance, imposes duties ranging from 60 to 100 percent on dairy imports. India, despite being an open market, is cautious about the impact of cheaper imports on the livelihoods of its small farmers and, therefore, has kept the dairy sector out of most FTAs.
Amul’s stance reflects its commitment to safeguarding the interests of Indian dairy farmers and ensuring price stability for its products in the domestic market.