Milk prices are set to rise again for consumers as leading dairy brands Amul and Mother Dairy have announced an increase of Rs 2 per litre across several milk variants, effective May 14.
The move marks the second price hike by both companies in the last 13 months and is expected to influence regional dairy players as well, per a report by Economic Times.
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Companies cite rising production costs
Per Economic Times, the Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets products under the Amul brand, said it has "increased the prices of fresh pouch milk by Rs 2 per litre in major milk-selling variants/packs across India effective from May 14".
Mother Dairy also confirmed a similar revision in prices for its liquid milk variants starting Thursday.
Explaining the reason behind the increase, GCMMF was quoted as saying by Economic Times, "The price hike is being done due to an increase in the overall cost of operation and production of milk. There is a substantial increase in the cost of cattle feed, milk packaging film and fuel during the year."
The cooperative added that the increase works out to around 2.5-3.5 per cent per litre, which it said is lower than average food inflation levels.
Impact on consumers and farmers
The latest hike comes at a time when food inflation has already crossed the 4 per cent mark in April, adding pressure on household budgets.
Per ET, Mother Dairy said, "The revision has been necessitated in view of the sustained increase in farmer procurement prices, of around 6 per cent over the past one year, despite continued efforts to limit the impact on consumers".
It further stated that the revision is aimed at "maintaining a fair balance between farmer welfare and consumer interests".
Both companies said a major portion of their sales realisation, around 75 to 80 per cent, is passed on to milk producers.
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Revised milk prices
Under Amul's revised rates in Delhi-NCR and Uttar Pradesh, a 500 ml pack of Slim N will cost Rs 27, Taaza Rs 30, Cow Milk Rs 31 and Gold Rs 36. Buffalo milk has seen a steeper increase of Rs 4 per litre, taking the price to Rs 80.
Mother Dairy's toned milk (bulk vended) will now cost Rs 58 per litre, while full cream milk (pouched) has been priced at ₹72 per litre. Toned milk (pouched) has been increased to Rs 60 per litre, and cow milk will now cost Rs 62 per litre.
