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Mother Dairy increase milk prices by Rs 2-3 a litre, Amul increases product prices of butter, ghee, cheese, curd by 3% to 5%.

This will be the second increase of liquid milk after prices were raised by a similar amount in May this year by the dairy cooperatives. The new prices will come into effect on Sunday, said Amul's managing director RS Sodhi. The dairy cooperative passes on almost 80 paise of every rupee paid by consumers to milk producers.

, ET Bureau|
Dec 14, 2019, 08.05 PM IST
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Milk-in-Kulhad
Amul has increased product prices of butter, ghee, cheese, curd by 3% to 5% , said Sodhi.
New Delhi: The Gujarat Co-operative Milk Marketing Federation Ltd, which markets the Amul brand of dairy products and The Punjab State Cooperative Milk Producers Federation, which sells under the Verka brand have ncreased milk prices by Rs 2 a litre, citing higher input costs. Mother Dairy has increased milk prices by Rs 2-3 a , depending on the milk variants.

Amul has simultaneously also increased dairy product prices by 3% to 5%%, top industry executives said.

This will be the second increase of liquid milk after prices were raised by a similar amount in May this year by the dairy cooperatives.

The new prices will come into effect on Sunday, said Amul's managing director RS Sodhi. The dairy cooperative passes on almost 80 paise of every rupee paid by consumers to milk producers.

"This year the price of cattle feed has increased by more than 35%. The major increase has been seen in deoiled rice bran prices by 40% in past one year to Rs 15-16 a kg and maize by 20% to Rs 21 a kg. Considering increase in cattle feed and other input costs, our member unions have increased milk procurement price," said Sodhi.

Amul has increased product prices of butter, ghee, cheese, curd by 3% to 5% , said Sodhi

The Amul cooperative will be giving farmers in the range of Rs 100 to Rs 110 per Kg fat which is more than 15% increase than last year for the 36 lakh milk producers of Gujarat, said Sodhi. We will further increase price by another 5% this month, he added.

In the last three years Amul has made only two price revision for pouch milk which is only Rs 4 per litre and less than 3% per annum increase in MRP. The price increase in milk is much lower than average food inflation, said Sodhi.

Mother Dairy said that it is compelled to raise its milk prices in Delhi NCR for all its milk variants after It's availability across various states is under severe stress due to adverse climatic conditions including extended monsoon and delayed start of the flush season.

"The adverse climatic conditions have also resulted in a significant increase in feed and fodder prices. This has impacted the prices paid to the milk producers. The raw milk prices, which in a normal year come down during winter months, have firmed up substantially. The prices paid to milk producers have increased by about Rs 6 a kg in the last few months, up by almost 20% than the corresponding period last year," said a Mother Dairy spokesperson.

Verka has increased milk prices by Rs 2 a litre in view of the rising cost of production, said an official.

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