Amul Hikes Milk Prices Amid Rising Food Inflation

Amul has increased milk prices by Rs 2 per litre due to rising input costs, contributing to heightened food inflation, which recently surged past 4%. This decision, likely to be followed by other dairies, reflects increased production costs, and aims to sustain remunerative prices for milk producers.

Amul, India's largest milk retailer, has raised milk prices by Rs 2 per litre, marking the second increase within a year. The price hike is attributed to higher input costs and aims at coping with mounting food inflation, which has surpassed the 4% mark recently due to geopolitical conflicts.

This move by the Gujarat-based cooperative could spark similar actions by other dairy companies, such as Mother Dairy. The Gujarat Cooperative Milk Marketing Federation (GCMMF), responsible for marketing Amul products, stated that the price adjustment will affect major milk-selling variants across India, effective from May 14.

The cooperative highlighted the substantial rise in cattle feed, packaging, and fuel costs, influencing the decision. Despite the increase, Amul commits to passing on about 80% of consumer rupee to milk producers, ensuring they receive fair compensation, thereby encouraging increased milk production.