Amul hikes milk prices for the first time in one and a half years

The Gujarat Co-operative Milk Marketing Federation (GCMMF), a marketer of milk and milk products under the brand name of Amul, has decided to hike milk prices by Rs 2 per liter in the markets of Ahmedabad and Saurashtra. The hike will be effective from July 1 in Gujarat and Delhi-NCR. In Ahmedabad, Amul Gold will cost Rs 29 per 500 ml, Amul Taza will cost Rs 23 per 500 ml and Amul Shakti will cost Rs 26 per 500 ml.

An increase of Rs 2 per liter translates into a 4 per cent increase in MRP, which is much lower than average food inflation. The price revision is being done across India, in the rest of the markets where Amul is marketing its fresh milk.

In the last 1.5 years, Amul has not done any price revision in its fresh milk category.
Amul said that since then the total cost of operations has increased due to increase in cost of energy, packaging, logistics. Considering the increase in cost, its member unions have also increased the price of farmers from Rs 45 to Rs 50 per kg of fat which is more than 6 per cent over the previous year.