The price of Amul milk and its fresh milk variants has been hiked by the Gujarat Co-operative Milk Marketing Federation (GCMMF) in the state. The new prices will be effective from November 12 and consumers will be forced to shell out an extra Rs 2-Rs 4 per litre depending on the milk variant.
The price hike is as much as 4 per cent to 5 per cent across the important variants of Amul fresh pouch milk, the GCMMF said in an official statement on Wednesday. The federation pointed to a sharp increase in milk price and milk production in the past year as the rationale for the move.
The expenses on some of the key factors in milk production and distribution have risen significantly, the company said. Such as green fodder, dry fodder, cattle feed products like oil cake, maize and molasses, packaging film and fuel for transportation.
Amul also referenced difficult weather, namely uneven and less-than-normal rain in Gujarat and in other parts of the country, that has impacted the dairy industry.
The price hike was required to offset the increased costs of feed and other inputs, alongside providing milk producers with increased price returns at challenging times, the federation said.
Amul pointed out that, in the last year, the procurement prices offered to dairy farmers have already been increased by Amul by 4 per cent to 5 per cent by its member unions. But the new adjustment in retail prices is likely to give additional monetary relief to dairy farmers.
It also and over 80 per cent of the farm-to-consumer money generated by the company goes back to virtually 36,00,000 milk producers who are connected with the federation.
Amul claimed that a significant share of the revenue it amassed through the price hike would end up with the farmers. The initiative is also designed to spur milk pricing and boost the cooperative milk chain.
As the new rates take effect on Nov. 12, shopping around the nation will mean new prices consumers will be paying for their daily milk consumption.