The price of Amul milk across all variants has been raised by Rs 2 per litre with effect from June 3, said Jayen Mehta, MD of GCMMF, which markets the milk and dairy products under the ‘Amul’ brand.
The last time GCMMF had raised the milk price was in February 2023. The hike is necessitated to compensate farmers for their increased cost of production, Mehta said.The federation has attributed the hike to the rise in input costs. According to Jayen Mehta, MD of GCMMF, the increase is necessary to compensate farmers for their increased cost of production. He stated, “Our member unions have also increased farmers’ [milk procurement] price approximately by 6-8% over the last year.”
Impact on Prices
With the revision, Amul buffalo milk will cost ₹73 a litre, while cow milk will cost ₹58 a litre. The increase of Rs 2 per litre translates to a 3-4% increase in MRP, which is lower than the average food inflation.
“The increase of Rs 2 per litre translates to the range of 3-4 per cent increase in MRP which is much lower than the average food inflation. It is worthwhile to note that since February 2023, Amul has made no increase in prices of fresh pouch milk in major markets,” GCMMF said in a statement.This price hike is being done due to the increase in the overall cost of operation and production of milk, it said.Amul as a policy passes on almost 80 paise of every rupee paid by consumers for milk and milk products to milk producers, according to GCMMF.
“The price revision shall help in sustaining remunerative milk prices to our milk producers and to encourage them for higher milk production,” it added.
Consumer Reactions
Many customers voiced their frustration over the price rice and said that even 2 rupees hike becomes a “burden for the middle class”.
Many customers voiced their frustration, with one stating, “As soon as elections are over, they increase the prices. Even the road tax is increased. It becomes really difficult for the middle class.” Another echoed this sentiment, saying, “After elections, the rate of all things are going up, but we cannot do anything about it.”
However, some consumers were more understanding of the price hike, with one commenting, “An increase of 1 or 2 rupees doesn’t make much difference. They need to run their business too. It probably wasn’t enough for them before, which is why they raised the price.”
Commitment to Farmers
Amul follows a policy where it passes on almost 80 paise of every rupee paid by consumers to milk producers. This price revision is aimed at sustaining remunerative milk prices for farmers and encouraging higher milk production.
“Amul as a policy passes on almost 80 paise of every rupee paid by consumers for milk and & milk products to the milk producers. The price revision shall help in sustaining remunerative milk prices to our milk producers and to encourage them for higher milk production,” the statement mentioned.
Past Price Trends
It is noteworthy that Amul has not increased the prices of fresh milk pouches in major markets since February 2023, highlighting their efforts to maintain stable prices for consumers.
ALSO READ: India to increase road toll charges from June 3rd
National Toll Hike
In other news, the National Highways Authority of India (NHAI) has announced an average hike of 5% in toll tax across the country, effective from June 3. This revision was initially scheduled for April 1 but was deferred due to the Lok Sabha elections this year.
Reason for Toll Hike
The adjustment in toll fees is part of an annual process to revise rates in accordance with changes in CPI-based inflation. There are approximately 855 user fee plazas on the national highway network, where tolls are collected.
