The Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets Amul products, has announced an increase in milk prices across India. Effective Thursday, November 12, consumers will see prices rise by Rs 2 to Rs 4 per litre, depending on the variant.
This marks the first price adjustment by Amul in six months, with the last revision occurring in May. The federation stated that fresh pouch milk prices would increase by approximately 4-5 per cent across various major variants and pack sizes.
Specific Price Adjustments
According to the GCMMF, Amul Taaza toned milk, which contains 3 per cent milk fat and is one of its largest-selling products, will see a price increase of Rs 2 per litre, representing a 3.3 per cent rise. Amul Gold milk, with 6 per cent milk fat, will become dearer by Rs 4 per litre, a 5.5 per cent increase.
Reasons Behind the Hike
The cooperative cited several factors contributing to the necessity of the price increase. A significant rise in the overall cost of milk production has been observed, encompassing expenses for green and dry fodder, as well as crucial cattle feed ingredients like oil cake, maize, and molasses. Additionally, increased costs for packaging film and fuel have added to the operational burden.
GCMMF also highlighted challenging environmental conditions, specifically low and uneven rainfall in Gujarat and various other parts of India. These adverse weather patterns have intensified pressure on dairy farmers, impacting their ability to sustain production costs.
Supporting Dairy Farmers
The federation emphasized that a primary objective of the price hike is to provide better remuneration to its producers. Member unions have already raised the milk procurement prices paid to farmers by 4-5 per cent over the past year. This latest revision in consumer prices is expected to allow for further increases in procurement rates, directly assisting farmers in managing their escalating expenses.
GCMMF stated that approximately 80 per cent of the revenue generated from consumers through its cooperative network is returned to its 36 lakh milk producers. A substantial portion of the current retail price increase will be passed on to these farmers, helping them maintain and expand their milk production capabilities during these difficult economic and environmental circumstances.