Amul raises milk prices by Rs 2 from July 1 – Times of India
MUMBAI: India's leading dairy Amul has raised milk prices by Rs 2 per litre with effect from July 1. Going by past precedent, other brands are likely to follow the market leader shortly.
Although the company's move was compelled by higher input costs, it adds to the burden of the average household whose income has reduced amid the Covid-19 pandemic.
RS Sodhi, managing director of Gujarat Cooperative Milk Marketing Federation (GCMMF), which owns the brand, said Amul Gold will cost Rs 58 per litre in Mumbai while the price of Taaza has been revised to Rs 48.
A press released issued by the company Wednesday said, "The increase of Rs 2 per litre translates into 4% increase in MRP which is much lower than average food inflation. The price revision is being done all India, in rest of the markets where Amul is marketing its fresh milk."
GCMMF cited higher input costs as the main reason for the price hike. "It is worthwhile to note that in the last 1.5 years Amul has not made any price revision in its fresh milk category. Since then due to rise in costs of energy, packaging, logistics, the overall
cost of operation has increased. Considering the rise in input costs, our member unions have also increased farmers' price in the range of Rs 45 to Rs 50 per kg fat which is more than 6% over previous year."
The company claims that as a policy, it passes on almost 80 paise of every rupee paid by consumers for milk and milk products to milk producers. "The price revision shall help in sustaining remunerative milk prices to our milk producers and to encourage them for higher milk production," it said.
Although the company's move was compelled by higher input costs, it adds to the burden of the average household whose income has reduced amid the Covid-19 pandemic.
RS Sodhi, managing director of Gujarat Cooperative Milk Marketing Federation (GCMMF), which owns the brand, said Amul Gold will cost Rs 58 per litre in Mumbai while the price of Taaza has been revised to Rs 48.
A press released issued by the company Wednesday said, "The increase of Rs 2 per litre translates into 4% increase in MRP which is much lower than average food inflation. The price revision is being done all India, in rest of the markets where Amul is marketing its fresh milk."
GCMMF cited higher input costs as the main reason for the price hike. "It is worthwhile to note that in the last 1.5 years Amul has not made any price revision in its fresh milk category. Since then due to rise in costs of energy, packaging, logistics, the overall
cost of operation has increased. Considering the rise in input costs, our member unions have also increased farmers' price in the range of Rs 45 to Rs 50 per kg fat which is more than 6% over previous year."
The company claims that as a policy, it passes on almost 80 paise of every rupee paid by consumers for milk and milk products to milk producers. "The price revision shall help in sustaining remunerative milk prices to our milk producers and to encourage them for higher milk production," it said.
