Amul Implements ₹2 per Litre Price Hike in India Amid Rising Costs

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Amidst rising input costs, the Gujarat Cooperative Milk Marketing Federation (GCMMF) has decided to increase the price of Amul fresh milk by ₹2 per litre, effective from June 3, 2024, across all markets in India. The federation, which markets milk under the renowned brand Amul, cited the escalation in the overall cost of operation and production of milk as the primary reason for the hike. This move aims to ensure fair prices for milk producers and sustain remunerative milk prices to encourage higher milk production.

The last time the price of Amul milk was raised was back in February 2023, marking a significant interval without any revisions until now. With the recent increment, prices of Amul buffalo milk and cow milk will rise to ₹73 and ₹58 per litre, respectively. Jayen Mehta, the Managing Director of GCMMF, emphasized that the hike is crucial to compensate farmers for the increased cost of production, reflecting the federation’s commitment to supporting milk producers.

According to GCMMF, the price hike will only translate to a 3-4% increase in the Maximum Retail Price (MRP), which remains lower than the average food inflation rate. Moreover, it is noteworthy that Amul has refrained from increasing the prices of fresh milk pouches in major markets since February 2023, demonstrating commendable consistency in price maintenance. With almost 80 paise of every rupee paid by consumers being directed to milk producers, Amul reaffirms its dedication to sustaining remunerative prices for farmers.

In conclusion, the recent price revision by Amul highlights the challenges posed by escalating input costs in the dairy industry, prompting necessary adjustments to uphold fair pricing mechanisms for milk producers. By passing on a significant portion of consumer payments to farmers, Amul continues to prioritize the welfare of its suppliers and strives to foster increased milk production through favorable pricing strategies.