Manufacturers of packaged milk are set to increase prices of their products as Gujarat Cooperative Milk Marketing Federation (GCMMF), the marketer of Amul branded dairy products, has raised rates across its brands by Rs 2 per litre.
The increase in milk prices could also result in allied and value-added milk products getting dearer in the days/weeks ahead.
Speaking to DNA Money, R S Sodhi, managing director, GCMMF Ltd, said, “Other players will definitely follow suit more or less in the same range. The price hike across Amul brands has been taken after a gap of two years and two months – the last revision was in March 2017. This had to be done as prices of major input costs or cattle feed ingredients have seen an upward move over the past one year. Considering the increase in the cost of milk production, all member milk unions of Gujarat have increased the milk purchase price by a minimum of Rs 30 to 50 per kilogram fat (5-8%) over the last few months.”
Accordingly, starting May 21, 2019, a price increase of Rs 2 per litre has been taken across Amul’s six brands sold in major markets of Delhi NCR, Gujarat, West Bengal, Kolkata, Uttaranchal, Maharashtra, etc. As a result, the revised maximum retail price (MRP) of a 500 ml pack of Amul Gold in Delhi NCR will be Rs 27, Amul Taaza Rs 22, Amul Cow Rs 22, Amul Slim’n’Trim Rs 19 and Amul Diamond Rs 28.
With input costs continuously heading North, packaged milk products could witness another round of price hikes in the future. “It’s very difficult to say (if there will be more price hikes),” said Sodhi. He also did not comment on the corresponding impact of this price hike on allied, value-added milk products.
Elaborating on the increased input costs, GCMMF said in a statement that there has been a major increase in the 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.
“This has resulted in increase in the cattle feed price by over 15%. Similarly, the rate of green fodder has seen a 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 and fodder cost, labour cost, cost of veterinary treatment, etc, and some profits for running livelihood of their family,” the company said.
UTTERLY NEEDED
- Rs 2/litre – The amount by which Amul has raised the price of its milk
- Over 15% – Rise in prices of cattle feed
- Over 100% – Price of green fodder has increased
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