Amul hikes milk prices by Rs 2/ltr in Delhi, Maharashtra other markets

Amul Dairy
Dairy cooperative Amul said Monday it will increase milk prices by Rs 2 per litre in Delhi, Maharashtra and other places from Tuesday because its production cost had increased.

Prices will go up in Gujarat, West Bengal, Kolkata, Uttaranchal, Maharashtra, and other places. A 500 ml pack of Amul Gold in Ahmedabad will cost Rs 27, Amul Shakti Rs 25, Amul Taaza Rs 21 and Amul Diamond Rs 28. 

Amul will not change cow milk prices in Gujarat, after a revision two years ago in March 2017.

Gujarat Co-operative Milk Marketing Federation Ltd, the cooperative which manages Amul, said in a statement there the price of cattle feed has increased by over 15 per cent. 

In the last two years, domestic and international dairy markets have witnessed adverse conditions. The industry has seen a steep decline in prices of commodities such as skimmed milk powder (SMP), whole milk powder (WMP) and butter oil. 

"This had resulted into decline in producer prices of milk across India leading to adverse impact on milk producers. However, the milk cooperatives of Gujarat continued to pay remunerative prices of milk to its producers and the average final price of milk paid to our producers has increased from Rs 710 per kg fat in 2017-18 to Rs 730 per kg fat in 2018-19," the federation said.

Amul, which passes on almost 80 paise of every rupee paid by consumers to the milk producers, looks to provide remunerative milk purchase price to producers through the price hike.