scorecardYour milk will now get dearer as Mother Dairy and Amul raise prices by ₹2 per litre
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Your milk will now get dearer as Mother Dairy and Amul raise prices by ₹2 per litre

Your milk will now get dearer as Mother Dairy and Amul raise prices by ₹2 per litre
IndiaIndia2 min read
  • Dairy companies like Amul and Mother Dairy have raised their milk prices by ₹2 citing the rise in input costs.
  • The price rise will reflect from August 17.
  • The major reason behind the rise in price of milk is the steep increase in costs of energy, packaging, logistics and cattle feed.
Indian dairy and cattle farmers have been barely recovering their input costs thanks to the increase in fodder and fertiliser prices. This increased cost has been passed on to dairy companies and now, consumers will also have to spend a little extra on their milk.

Mother Dairy and Gujarat Cooperative Milk Marketing Federation’s (GCMMF) Amul have announced a hike in their sticker price by ₹2 per litre, which will reflect from August 17. Mother Dairy and Amul, along with other companies like Parag and Verka, had raised their milk prices by ₹2 in March citing the rise in input costs.

“Mother Dairy is compelled to raise its liquid milk prices by ₹2/litre with effect from August 17, 2022. The new prices will be applicable for all milk variants,” said Mother Dairy in a press release.

The increase of ₹2 per litre translates into a 4% increase in maximum retail price (MRP).

In Ahmedabad and Saurashtra markets, a 500 ml pack of Amul Gold will now cost ₹31, Amul Taaza ₹25 and Amul Shakti ₹28.

“The GCMMF has decided to increase the milk prices by ₹2 per litre in the markets of Ahmedabad and Saurashtra region in Gujarat, Delhi NCR, West Bengal, Mumbai and all other markets where Amul is marketing its fresh milk," said Amul.

Why are milk prices surging?

Dairy companies have been experiencing a surge in varied input costs, which have increased multifold during the last five months.

"The cattle feeding cost alone has increased by approximately 20% compared to last year. Considering the rise in input costs, our member unions have also increased farmers' prices in the range of 8-9% over the previous year," said Amul’s statement.

The farm prices of raw milk have increased by about 10-11% in the said period. In June, the GST council had also imposed a 5% tax on dairy items like ‘pre-packed, pre-labelled curd, lassi, paneer, and buttermilk’ and increased GST on dairy machinery from 12% to 18%, further adding to the costs.

"The price revision shall help in sustaining remunerative prices for our milk producers and encourage them for higher milk production," Amul’s release said about its latest price hike.

However, the revision in prices is likely to affect the dairy product-loving Indians, who have been switching to local unbranded products as they look for ways to deal with higher prices.

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