Amul, Mother Dairy hike milk prices in Mumbai by Rs 2/litre

Written by PTI | New Delhi | Updated: Jan 27 2014, 18:14pm hrs
AmulAmul sells 11 lakh litres milk per day, while Mother Dairy sells nearly 2.5 lakh litres a day in Mumbai. PTI
Milk prices in Mumbai have been hiked by Rs 2 per litre, as lead suppliers Amul and Mother Dairy have passed increased cost of procurement on customers.

While Amul has increased the price from today, Mother Dairy will hike rates from tomorrow.

"We have increased milk price in Mumbai by Rs 2 per litre from today," Gujarat Cooperative Milk Marketing Federation (GCMMF), which sells milk under the Amul brand, told PTI.

Sodhi said the prices of Amul gold (full cream milk) has gone up to Rs 46 per litre from Rs 44 per litre, while that of Amul Taaza (toned) to Rs 36 per litre from Rs 34 per litre.

Amul is the largest dairy firm in Mumbai market with sale of 11 lakh litres per day, while Mother Dairy sells nearly 2.5 lakh litre a day.

Asked about the reasons for price hike, Sodhi said: "the procurement price of milk has increased and also the general inflation has risen".

Mother Dairy, too, will increase the prices by Rs 2 per litre of all milk variants in Mumbai region from tomorrow.

"The hike has been compelled due to rise in procurement prices by the farmers (dairy) hence the company is constrained to increase the prices. This hike is to ensure remunerative prices to farmers and sustained availability of milk," Mother Dairy said in a statement.

Nearly 80 per cent of the total sale proceeds of Mother Dairy goes into the procurement of milk.

While Sodhi of Amul ruled out that prices have increased because of higher exports of milk powder, industry sources said that about 1.5 lakh tonnes of skimmed milk powder and its equivalent caseine are likely to be exported this fiscal.

SMP exporters are paying higher prices to farmers forcing the milk companies to increase the procurement rates, sources said.

Asked about hike in prices in other regions, including Delhi NCR, Sodhi said: "Prices in Pune will be increased from January 28. We have not decided about Delhi NCR, but input cost has increased."