Amul's Price Hike: India's Beloved Brand Faces Inflation Challenges

The Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets Amul, announced a price increase of Rs 2 per litre for milk nationwide, effective May 14, due to rising input costs. This move, following a previous hike on May 1, 2025, aims to maintain producer incentives amid escalating operational expenses.

The Gujarat Cooperative Milk Marketing Federation (GCMMF), known for the popular Amul brand, has raised milk prices by Rs 2 per litre throughout India as of May 14. The decision comes in response to increasing input costs, which could potentially exacerbate food inflation and strain the budgets of middle-class families.

This price adjustment follows a recent hike on May 1, 2025, and represents approximately a 2.5-3.5 per cent increase per litre, a rate still below the average food inflation. GCMMF attributes the rise to higher operating and production costs, including increased expenses for cattle feed, milk packaging, and fuel.

The cooperative, which prides itself on returning 80 paise of every consumer rupee to milk producers, stated that the price revision would support sustainable farmer profits and boost milk production. GCMMF has reported an impressive turnover growth of over 11 per cent for the fiscal year, hitting Rs 73,450 crore, driven by the robust demand for dairy products.