Amul and Mother Dairy have announced an increase of Rs.2/litre on fresh milk and now 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 500 ml. The increase of Rs 2 per litre translates into a 4 per cent increase in the maximum retail price (MRP), which is lower than average food inflation.
An increase in milk prices has been implemented due to an increase in the overall cost of operation and production of milk. The cost of cattle feeding alone has risen by approximately 20% since last year.Considering the rise in input costs, our member unions have also increased farmers’ prices by an average of 8–9 percent over the previous year.
The recent hike by Mother Dairy is applicable to all milk variants. In March, Mother Dairy had increased milk prices by Rs. 2 per litre in the Delhi-NCR (National Capital Region) and now it is forced to increase its liquid milk prices by Rs. 2 per litre with effect from August 17, 2022.
The new prices will be applicable to all milk variants. Full cream milk will cost Rs. 61 per litre from Wednesday, up from Rs. 59 per litre. Prices of toned milk will increase to Rs. 51 per litre, while prices of double toned milk will rise to Rs. 45 per litre. The price of cow’s milk has been hiked to Rs. 53 per litre. The price of bulk vended milk (token milk) has been raised to Rs. 48 from Rs. 46 per litre.
The company has witnessed an increase in input costs in the last five months, such as the farm prices of raw milk have spiked by about 10–11 percent. 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 per cent of the sales realisation from milk towards the procurement of milk from the farmers.