Milk prices in India may not rise further, since timely monsoon relieved the pressure off feed and fodder prices, said Jayen Mehta, MD at GCMMF which operates the brand Amul. Further, the dairy industry was in flush season or peak output phase, which may keep prices unchanged.
Milk prices may remain unchanged going forward, says Amul MD. (Photo credit: News9live)
Ahmedabad: Milk prices may not rise further this year after timely monsoons led to a “pretty” good situation, said Jayen S Mehta, MD at Gujarat Cooperative Milk Marketing Federation (GCMMF), which owns and operates the dairy and FMCG brand Amul. Moreover, since the dairy industry is entering slush season, or the peak season for milk procurement, a hike may not be needed anytime soon, said Mehta.
Timely monsoons have also relieved the pressure on dairy producers by keeping feed and fodder costs under control, the PTI reported, citing Mehta.
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To be sure, multiple forecasts earlier this year predicted elevated milk prices until the festive season, owing to rise in fodder prices as well as decline in milk output owing to lumpy skin disease.
What is the price of 1 litre milk?
A litre of Amul Gold full cream milk costs Rs 66.
- Amul Taaza 1 litre Rs 54
- Amul Taaza 500 ml Rs 27
- Amul Gold 500 ml Rs 33
- Amul Cow milk 500 ml Rs 28
- Amul Cow milk 1 litre Rs 56
The company has raised milk prices by nearly Rs 8 per litre in the 12 months ending February 2023. This includes transportation costs along with other input charges.
In August, the dairy raised milk procurement prices by Rs 30 to Rs 850 per kilo fat. However, this did not raise prices for consumers.
What are Amul’s expansion plans?
Meanwhile, Amul plans to invest Rs 3,000 crore every year over the next few years into ramping up milk production and processing output, the PTI reported. The company plans to announce a new dairy plant in Rajkot. The projected output for the new facility is 20 lakh litres per day, said Mehta. The Rajkot facility is also expected to have a new packaging and production facility. This facility is expected to cost Rs 2,000 crore, he added.
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Duty on imported milk
Commenting on requests for import duty cuts from the EU, Mehta said that since dairy sector was an employer for 10 crore families in India who were small and marginal producers, any concessions may amount to dumping of surpluses by these countries.
This is a core issue that has guided the government to keep the dairy sector outside the FTA, he added.
Further, the EU and the US charge exorbitant duties on Indian dairy goods, compared to a 30 per cent duty charged on their dairy goods entering India, said the Amul MD. “India is an open market but here we don’t want their surpluses to come at a cheaper rate and harm the livelihood of our small farmers,” he said.
