Amul, the market leader in the dairy segment, has announced that it is increasing the price of packed milk by Rs 2 a litre. The circular issued by the Gujarat Cooperative Milk Marketing Federation, a copy of which was seen by the Financial Express Online, says that the price hike will come into force from August 17 i.e today. Amul, which sells milk under brand names of Shakti, Gold and Taaza, said that the price hike will be implemented in markets of Delhi-NCR, Gujarat, West Bengal and Mumbai. In Ahmedabad and Saurashtra markets, the Anand-headquartered federation says that from August 17, the price of 500 ml of Amul Gold will be Rs 31, Amul Taaza – Rs 25 and Amul Shakti- Rs 28 respectively.
Also Read: Return of Ghee on Indian Thali!
After the announcement by the market leader, other major players in the dairy segment have also followed the suit. Mother Dairy has also issued a circular. Major NCR brand Ananda has also increased the rates of its milk pouches. The move by the companies is seen as a fallout of high inflation and GST. The cost of production and raw material has witnessed a significant price hike due to current economic conditions.
For Mother Dairy consumers, this is the second price hike this year. Earlier in March, Mother Dairy had increased the price of its poly-pack milk products. The company that sells 30 lakh litres of milk via poly-packs and vending machines is a prominent player in Delhi-NCR. From tomorrow, if you are buying full cream Mother Dairy poly-pack, it would cost you Rs 61, instead of Rs 59 earlier. Similarly, cow milk will cost Rs 53 a litre. Toned milk will be priced at Rs 51 and double-toned milk at Rs 45, the Mother Dairy circular says.
The input cost of milk production has seen a significant hike in past five months, a Mother Dairy official was quoted as saying by PTI. Giving the break-up, the official said that farm prices of raw milk has gone up by around 10 to 11 per cent. Along with this, there has been a sustained increase in fodder rates. The milk industry is also seeing a surge in prices due to extended summer because of heatwaves.