India's Two Big Dairy Companies Hiked Milk Prices By Rs2/ Litre From Thursday

2026-05-14 11:19:17

(MENAFN- Khaleej Times) Two of India's largest dairy product companies have hiked the price of milk by Rs2 a litre effective Thursday because of rising input costs. The Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets the popular Amul brand, and Mother Dairy, part of the state-owned National Dairy Development Board, announced the hike in price across India.

The two brands had last hiked the prices in April and May 2025.

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“The revision has been necessitated in view of the sustained increase in farmer procurement prices, of around 6 per cent over the past one year, despite continued efforts to limit the impact on consumers”, the GCMMF said in a release. A rise in operational and production costs including on cattle feed, milk packaging film and fuel led to the price hike.

According to the GCMMF, 80 per cent of the price paid by consumers is passed on to the producers. The hike aims to provide remunerative prices for dairy farmers and results in higher milk production.

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Mother Dairy said the hike is only a partial pass-through of higher costs and will ensure maintaining a fair balance between farmer welfare and consumer interests.

GCMMF is one of the largest farmer-owned dairy cooperatives in the world and has 3.6 million farmers contributing to its sales. It collects over 30 million litres of milk from farmers daily and distributes it as Amul milk, butter, cheese, ghee and ice cream.

The farmer's federation saw an 11 per cent rise in turnover last fiscal year, which shot up to Rs735 billion (about Dh28.2 billion).

Mother Dairy reported a 17 per cent rise in turnover, which added up to over Rs200 billion (about Dh7.67 billion).

Amul products are exported to the Middle East, Southeast Asia, the US and Australia; while Mother Dairy sells its products in the Middle East, Southeast Asia, Russia, Europe and the US.

The ongoing war in the Gulf has resulted in record shipments of dairy products from India to the region. Jayen Mehta, managing director, GCMMF, recently told the media that it had shipped 2,700 tonnes of skimmed milk powder to the Middle East during the recent crisis.“This is 120 per cent volume growth over the same period last year,” he said.