Major Dairy Brands Raise Milk Prices Amid Rising Costs
Consumers across India will see higher milk prices as major dairy brands Amul and Mother Dairy implement hikes from November 12. These increases follow an earlier price revision by Karnataka-based Nandini, which raised its rates from November 1.
The dairy cooperatives attribute the necessity for price adjustments to a significant surge in input costs for milk production and processing, alongside the need to ensure fair compensation for farmers.
Amul's Nationwide Price Hike
Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF), which markets the Amul brand, announced an approximate 4-5% increase in fresh pouch milk prices across its key markets. Specifically, Amul Taaza toned milk will cost ₹2 more per litre, while Amul Gold will see a ₹4 increase per litre.
Jayen Mehta, Managing Director of GCMMF, stated, "This price hike is being done due to the steep increase in input cost of milk production as well as processing and we need to find a balance between producers and consumers." Amul emphasized that 80% of the revenue collected from consumers through its cooperative structure is returned to its 36 lakh milk producers.
Nandini and Mother Dairy Also Increase Rates
Prior to Amul and Mother Dairy, Karnataka's Nandini had already increased milk prices by ₹8 per litre from November 1. This adjustment raised the price of basic toned milk to ₹54 per litre from ₹46. Of this hike, ₹7 per litre is directed to farmers, with ₹1 allocated to milk co-operatives.
Mother Dairy is also increasing prices for its liquid milk variants by ₹2-4 per litre, effective November 12. The company noted that this revision reflects higher milk procurement prices, with Mother Dairy typically passing on 75-80% of its milk sales realization to farmers.
Impact of Input Costs and Weather Challenges
The consistent reasons cited by all three dairy giants for these milk price hikes include the escalating costs of green and dry fodder, cattle feed ingredients such as oil cake, maize, and molasses. Additionally, increased expenses for milk packaging film and fuel have contributed significantly to the overall production costs.
Amul specifically pointed to challenging environmental circumstances, including low and uneven rainfall in Gujarat and other parts of India. These weather-related pressures necessitate higher consumer prices to provide better support and remuneration to milk producers during difficult times.