Amul & Mother Dairy increases price of milk by ₹2 per litre

|HT|

Leading milk suppliers Amul and Mother Dairy have increased the price of their milk by ₹2 per litre, starting Wednesday. The fresh hike comes in effect on account of rising input costs.

In the last six months, this is the second hike by the two dairy companies. Earlier, in the beginning of March, both Amul and Mother Dairy had increased milk prices by ₹2 per litre.

The fresh hike of ₹2 per litre translates into a 4 per cent increase in MRP (Maximum Retail Price) which, according to a statement by the Gujarat Cooperative Milk Marketing Federation (GCMMF), which hsells milk and other dairy products under the Amul brand, "is lower than the average food inflation."

"This price hike is being done due to an increase in overall cost of operation and production of milk. The cattle feeding cost alone has increased to approximately 20 per cent compared to last year," the GCMMF stated in the statement.

"Considering the rise in input costs, our member unions have also increased farmers' prices in the range of 8-9 per cent over the previous year," it added.

The company is hoping the price revision will help in sustaining remunerative milk prices for the milk producers and further encourage them for higher milk production.

Separately, Mother Dairy announced that it will hike milk prices in the Delhi-NCR (National Capital Region) by the same amount. It also stated the same reason for the price hike, as it informed that "the company has witnessed an increase in input costs in the last five months."

Mother Dairy is a leading milk supplier in the Delhi-NCR market and sells more than 30 lakh litres per day in poly packs and through vending machines. While GCMMF sells more than 150 lakh litres of milk per day and out of the total quantity, Delhi-NCR accounts for nearly 40 lakh litres per day.

(Except for the headline and the pictorial description, this story has not been edited by THE DEN staff and is published from a syndicated feed.)