Amul, Mother Dairy to hike milk prices by Rs 2 per litre from Wednesday

New Delhi: Leading milk suppliers Amul and Mother Dairy will increase milk prices by Rs 2 per litre with effect from Wednesday on account of rising input costs.

This is the second hike by Amul and Mother Dairy in nearly six months. In the beginning of March, both had increased milk prices by Rs 2 per litre.

The Gujarat Cooperative Milk Marketing Federation (GCMMF), which sells milk and other dairy products under the Amul brand, on Tuesday said it has decided to increase the milk prices by Rs 2 per litre in Ahmedabad and Saurashtra of Gujarat, Delhi-NCR, West Bengal, Mumbai and other markets effective from August 17.

The hike of Rs 2 per litre will translate into a 4 per cent increase in MRP (Maximum Retail Price) which is lower than the average food inflation, it said in a statement.

"This price hike is being done due to an increase in overall cost of operation and production of milk. The cattle feeding cost alone has increased to approximate 20 per cent compared to last year. Considering the rise in input costs, our member unions have also increased farmers' price in the range of 8-9 per cent over the previous year," GCMMF said.

The co-operative passes on almost 80 paise of every rupee paid by consumers for milk and milk products to the milk producers.

The price revision shall help in sustaining remunerative milk prices to our milk producers and to encourage them for higher milk production, the GCMMF said.

Separately, Mother Dairy announced that it will hike milk prices in the Delhi-NCR (National Capital Region) by Rs 2 per litre from Wednesday.

Mother Dairy is a leading milk supplier in the Delhi-NCR market and sells more than 30 lakh litres per day in poly packs and through vending machines.

A company official on Tuesday said it is "compelled" to raise its liquid milk prices by Rs 2 per litre with effect from August 17, 2022. The new prices will be applicable for all milk variants.

Full cream milk will cost Rs 61 per litre from Wednesday, up from Rs 59 per litre.

Prices of toned milk will increase to Rs 51 while double toned milk will rise to Rs 45 per litre. Cow milk price have been hiked to Rs 53 per litre.

Bulk vended milk (token milk) price has been raised to Rs 48 from Rs 46 per litre.

The company has witnessed an increase in input costs in the last five months, the official said.

For instance, the farm prices of raw milk have spiked by about 10-11 per cent.

Likewise, the cost of feed and fodder has also witnessed a significant rise due to the heat wave and extended summer season.

According to the official, the surge in farm prices is only being partially passed on to the consumers, thereby securing the interests of both the stakeholders - consumers and farmers.

The company spends around 75-80 per cent of the sales realisation from milk towards the procurement of milk from the farmers.

GCMMF said that Amul full cream milk will be available at Rs 62 per litre in Ahmedabad, Kolkata, Delhi-NCR and Mumbai while toned milk will be sold at Rs 50 in Ahmedabad and Rs 52 each in the remaining three markets.

Amul's double toned milk price has been increased to Rs 44 in Ahmedabad and Rs 46 per litre in Kolkata and Delhi-NCR.

GCMMF sells more than 150 lakh litres of milk per day and out of the total quantity, Delhi-NCR accounts for nearly 40 lakh litres per day.

India is the world's largest milk producer.