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Amul hikes milk prices by Rs 2 per litre

FE Bureau
Amul hikes milk prices by Rs 2 per litre

The Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets dairy products under the brand name Amul, on Monday decided to hike milk prices by Rs 2 per litre of all six brands being sold in major markets of Delhi-NCR, Gujarat, West Bengal, Kolkata, Uttarakhand, Maharashtra, among others, from May 21.

The revised MRP of 500 ml pack of Amul Gold in Ahmedabad will be `27, Amul Shakti `25, Amul Taaza `21 and Amul Diamond `28. There has been no change in cow milk prices in Gujarat. It may be noted that the consumer prices of milk were revised two years back in March 2017.

According to an official statement issued by GCMMF, the national and international dairy markets have witnessed adverse conditions since the last 2 years. Due to this, there has been a steep decline in the prices of commodities such as SMP, WMP & Butter oil. This had resulted into decline in producer prices of milk across the country, leading to adverse impact on milk producers. However, the milk cooperatives of Gujarat continued to pay remunerative prices of milk to its producers and the average final price of milk paid to producers has increased from `710 per kg fat in 2017-18 to `730 per kg fat in 2018-19.

Unfortunately, over the last one year, there has been a major increase in price of major cattle feed ingredients such as De-oiled Rice Bran by 61%, Rice Polish fine by 22%, Molasses by 82%, Maize by 63%, among others, which has resulted in increase in the cattle feed price by over 15%.

Similarly, the rate of green fodder has seen hike of more than 100% in this summer. For the milk producers, the milk purchase prices paid must cover various input costs such as feed & fodder cost, labourer cost, cost of veterinary treatment, among others, and some profits for running livelihood of their family. Considering increase in the cost of milk production, all member milk unions of Gujarat have increased milk purchase price by a minimum of `30-50 per kg fat (5-8%) over the last few months. This will motivate our milk producers to keep inducting new animals and producing milk and support their livelihood, the statement said.

Amul, as a cooperative, passes on almost 80 paise of every rupee paid by consumers to the milk producers. This increase in milk prices by `2 per litre has happened after a gap of two years with an aim to provide remunerative milk purchase price to our milk producers owing to drop in milk production and increase in the cost of production, it added.