India's Dairy Giants Amul and Mother Dairy Hike Milk Prices Amid Inflation

Amul and Mother Dairy, India's leading dairy retailers, have increased milk prices by Rs 2 per litre. This move, driven by rising operational costs, is expected to impact households and fuel inflation, while also balancing farmer welfare and consumer interests.

In a move that is likely to exacerbate inflationary pressures, India's largest dairy product retailers, Amul and Mother Dairy, have announced a Rs 2 per litre increase in milk prices. The hike, effective from May 14, comes amid rising operational and production costs, according to statements from both companies.

Gujarat Cooperative Milk Marketing Federation (GCMMF), which operates under the Amul umbrella, explained the need for the increase citing a substantial rise in cattle feed, milk packaging, and fuel costs. Likewise, Mother Dairy indicated the rise was necessary due to increased farmer procurement prices over the past year.

The price increment is anticipated to ripple through regional dairy producers, adding further strain on household budgets already impacted by recent inflation hikes due to geopolitical tensions in West Asia. Both companies stress their commitment to balancing consumer interests with the financial welfare of farmers.