India’s largest food production organization, Amul which had an annual turnover of Rs 39,328 cr in 2020-21, has decided to hike the prices of its milk by Rs 2 per litre from July 1 onwards. The Gujarat Cooperative Milk Marketing Federation (GCMMF) announced this on Wednesday. This price raise can be translated into a 4 per cent increase in the MRP which will be implemented across all its brands of packaged liquid milk.
Consumers will witness this hike in Amul milk produce after 1 year and 7 months, with the previous increment in price levied in December 2019 by a similar Rs 2 per litre. The company has attributed this hike owing to an upsurge in production cost as well as food inflation.
RS Sodhi Marg, Director, GCMMF who looks into the marketing of Amul milk and dairy products announced the price escalation across all its brands that include Gold, Taaza, Shakti, T-special, cow as well as buffalo milk.
Since the packaging costs have risen by 30-40 per cent, coupled with an ascend of transportation and energy cost by 30 per cent, Amul observed an increase in input costs. This had a rippling effect on farmers prices which rose to Rs 45- Rs 50 per kg, an astounding 6 per cent rise over the previous years.
A 1-litre packet of Amul milk which earlier cost Rs 56, now costs Rs 58. Whilst a 2-litre pack that earlier stood at Rs 88, now costs Rs 90. 500 ml packets of Amul Gold, Tara and Shakti will now cost Rs 29, Rs 23 and Rs 26 respectively.
The company claims that almost 80 paise of every rupee spent by the consumers is transferred to milk producers. The revision thus ensures the producers’ sustenance, thus encouraging them to augment their milk production.
Consumers can, however, have a sense of respite as the increase in price is lower than the average food inflation.
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