Tuesday, 02 January 2024 12:17 GMT

Amul Announces Price Hike After Mother Dairy: Milk To Get Costlier By 5.5% From 12 November Check New Rates


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(MENAFN- Live Mint) Fresh pouch milk sold under the Amul brand is set to become costlier across India from November 12, with the Gujarat Cooperative Milk Marketing Federation (GCMMF) increasing prices by approximately 4-5% across major variants.

GCMMF, the apex dairy cooperative that markets milk and milk products under the Amul brand, said the revision affects some of its largest-selling fresh milk variants across operational markets.

Under the revised pricing, Amul Taaza toned milk, which contains 3% milk fat, will cost ₹2 more per litre, marking a 3.3% increase. Amul Gold milk, containing 6% milk fat, will see a ₹4 per litre increase, or a 5.5% hike.

Quick answers to key questions

.5 QUESTIONS1When will Amul's milk price increase take effect?⌵

Amul's revised prices for fresh pouch milk will take effect across India from November 12.

2How much are Amul Taaza and Amul Gold prices increasing?⌵

Amul Taaza toned milk will cost ₹2 more per litre, a 3.3% increase. Amul Gold will rise by ₹4 per litre, or 5.5%.

3Why is Amul increasing milk prices?⌵

GCMMF attributed the increase to higher milk production and processing costs, including the costs of fodder, cattle feed, packaging film and fuel. It also cited low and uneven rainfall.

4How will Amul's milk price hike support dairy farmers?⌵

GCMMF said member unions increased the rates paid to farmers for milk by 4–5% over the past year. The consumer price revision is intended to help sustain those payments, with a major portion of the increase going to milk producers.

5Which Amul milk variants are affected by the price increase?⌵

The article specifies increases for Amul Taaza toned milk and Amul Gold. GCMMF said the revision affects some of its largest-selling fresh milk variants across its operational markets.

The federation attributed the revision to rising input costs across dairy farming and commercial processing operations.

"This price hike is being done due to the steep increase in input cost of milk production as well as processing," the dairy federation stated.

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GCMMF said the rising cost of agricultural inputs and commodities has increased expenditure on livestock management and daily operations.

"There is a significant increase in cost of green and dry fodder, cattle feed ingredients like oil cake, maize and molasses, milk packaging film and fuel during the year," the statement added.

The federation also cited challenging climatic conditions and uneven rainfall across agricultural regions as factors behind the decision.

"In the current challenging environmental circumstances due to low and uneven rainfall in Gujarat as well as many parts of India, we are constrained to increase the consumer price of milk to pay better prices to our producers and support them in these difficult times," Amul said.

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The federation said its member unions have raised milk procurement rates paid to farmers by 4-5% over the past year.

According to GCMMF, the latest consumer price revision is intended to help sustain these payments to milk producers.

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"It is important to note that 80% of the revenue collected from consumers through the Amul co-operative structure is returned to our 36 lakh milk producers," the company said.

The cooperative added that a significant share of the increase in selling prices would be passed on to milk producers.

"A major portion of the increase in the selling price of milk will go back to the milk producers and they will continue to be encouraged to increase milk production," the federation stated.

(ANI inputs included)

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