Amul has announced a price increase for its fresh milk variants, effective November 12, with costs rising by Rs 2 to Rs 4 per litre depending on the milk type. This hike translates to an increase of approximately 4-5 percent across major markets in India, with toned milk seeing a rise of Rs 2 per litre and full-cream milk increasing by Rs 4 per litre. The Gujarat Cooperative Milk Marketing Federation (GCMMF), which oversees the marketing of Amul products, stated that these adjustments are necessary due to a significant rise in production and processing costs.

The price adjustments come in response to various factors impacting dairy farming, including a steep increase in the costs of green and dry fodder, cattle feed ingredients, packaging materials, and fuel over the past year. Additionally, the federation highlighted the adverse environmental conditions, particularly low and uneven rainfall in Gujarat and other regions, which have compounded the challenges faced by dairy farmers. GCMMF emphasized that these conditions necessitate the price revision to ensure better returns for milk producers.S2

GCMMF also noted that its member unions had previously raised the procurement prices paid to farmers by 4-5 percent over the last year. The latest consumer price hike is expected to further support milk producers, with around 80 percent of the revenue collected from consumers being returned to the 36 lakh milk producers associated with the cooperative. This increase aims to help farmers cope with rising production costs and encourage higher milk production, even as it adds to household expenses for families that rely on packaged milk.S2