Amul increases milk prices by Rs. 2 per litre

Anand(Amul statement): The Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets dairy products under the brand name of Amul, on Monday decided to hike the milk prices by Rs 2 per litre across all six brands being sold in major markets of Delhi NCR, Gujarat, West Bengal, Kolkata, Uttaranchal, Maharashtra etc. from 21st May’19 (Tuesday) onwards. The revised MRP of 500 ml pack of Amul Gold in Ahmedabad will be Rs. 27, Amul Shakti Rs 25, Amul Taaza Rs. 21 and Amul Diamond Rs. 28. There has been no change in cow milk prices in Gujarat. It may be noted that the consumer prices of milk were revised 2 years back in March 2017.

The national and international dairy markets have witnessed adverse conditions since the last 2 years. Due to this, there has been a steep decline in the prices of commodities such as SMP, WMP & 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.

Unfortunately, over the last one year, there has been a major increase in price of major cattle feed ingredients such as De-oiled Rice Bran by 61%, Rice Polish fine by 22%, Molasses by 82%, Maize by 63% etc which has resulted in increase in the cattle feed price by over 15%. Similarly the rate of green fodder has seen hike of more than 100% in this summer. For the milk producers, the milk purchase prices paid must cover various input costs such as feed & fodder cost, labourer cost, cost of veterinary treatment etc. and some profits for running livelihood of their family. Considering increase in the cost of milk production, all member milk unions of Gujarat have increased milk purchase price by a minimum of Rs. 30-50 per kg fat (5-8%) over the last few months. This will motivate our milk producers to keep inducting new animals & to keep producing milk and support their livelihood.

Amul, as a cooperative, passes on almost 80 paise of every rupee paid by consumers to the milk producers. This increase in milk prices by Rs. 2 per liter has happened after a gap of two years with an aim to provide remunerative milk purchase price to our milk producers owing to drop in milk production & increase in the cost of production.

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