1. Commodity News

Amul Milk will be Costlier by Rs 2 a litre from Today

Abha Toppo
Abha Toppo

Gujarat Cooperative Milk Marketing Federation (GCMMF), on 21st May 2019 announced a price hike of Rs 2 / litre for all its 6 consumer milk brands sold in major markets in India.

GCMMF while announcing the hike said the revised milk prices will be effective from 21st May 2019 in Gujarat, Delhi NCR, Uttaranchal, Maharashtra, West Bengal and Kolkata among others. However, it also clarified that there will be no change in the prices of cow milk in Gujarat market.

The MRP of a 500 ml pack of Amul Gold, Amul Shakti, Amul Taza and Amul Diamond variety in Gujarat will be revised upwards to Rs 27, Rs 25, Rs 21 & Rs 28 in that order.

Managing Director of GCMMF RS Sodhi said the consumer prices of milk were last revised 2 years back in March 2017. Sodhi attributed the increase in consumer milk prices to a sustained rise in cattle feed prices.

In a statement he said, "Over the past 1 year, there has been a major hike in prices of main cattle feed ingredients like de-oiled rice bran by 61%, rice polish fine by 22%, molasses by 82% and maize by 63% that has resulted in rise in the cattle feed price by more than 15%". He added "In the same way, the rate of green fodder has also seen a sharp hike of over 100% this summer”.

The GCMMF found it essential to increase consumer milk prices to keep milk producers motivated & sustain their livelihood. The statement also said, "Considering the rise in the cost of milk production, all member milk unions of Gujarat have hiked the milk purchase price by a minimum of Rs 30 to 50 / kg fat (5-8%) in the past few months. This will encourage our milk producers to keep inducting new animals & to keep producing milk & support their livelihood".

Sodhi said, "A cooperative, Amul transfers nearly 80 paise of every rupee paid by customers to the milk producers".

Mentioning the adverse conditions in the national and international dairy market over the past 2 years, GCMMF said there has been a sharp decline in the price of commodities like Whole Milk Powder (WMP), Skimmed Milk Powder (SMP) and butter oil.

He added, "This had resulted in a decrease in the producer prices of milk all over the country, leading to an adverse impact on milk producers. But, the Gujarat milk co-operatives continued to give remunerative prices to its producers & the average final price of milk paid to producers has increased from Rs 710 / kg fat in 2017-18 to Rs 730 / kg fat in 2018-19”.

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