The Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets dairy products under the popular Amul brand, has announced a nationwide increase of Rs 2 per litre across all its milk variants. This price revision will take effect from Tuesday, May 14, 2024, impacting consumers across all markets where Amul operates in India.

This latest adjustment marks the first price revision by Amul in approximately 15 months, following a previous hike implemented in February 2023. According to an official statement released by Amul, the decision was necessitated by an increase in the overall cost of operation and production of milk. The company cited higher input costs, including cattle feed, energy, packaging, and transportation, as primary drivers for the upward revision.

The Rs 2 per litre increase translates to an approximately 3-4% rise in the Maximum Retail Price (MRP), depending on the specific milk variant and packaging size. For instance, a 500ml pouch of Amul Gold (full cream milk) will now retail at Rs 33, up from Rs 32. Similarly, Amul Fresh (toned milk) in a 500ml pouch will cost Rs 27 instead of Rs 26. These new prices will apply uniformly to all Amul branded milk products sold throughout the country.

Key details regarding the price adjustment include:

  • Effective Date: May 14, 2024.
  • Price Increase: Rs 2 per litre across all variants.
  • Impacted Products: All Amul branded milk products, including Amul Gold, Amul Shakti, Amul Taaza, Amul Slim 'n' Trim, and others.
  • Justification: Rising operational costs, specifically citing increased expenses for cattle feed, energy, packaging, and logistics.
  • Farmer Share: Amul has reiterated its long-standing policy that approximately 80 paise of every Rupee paid by consumers for milk is disbursed to milk producers, aiming to ensure remunerative prices for farmers amidst rising production costs.

The price hike by Amul, a leading player in India's organised dairy sector, is expected to have a noticeable impact on household budgets across the country. Milk is a fundamental commodity in Indian households, and its increased cost could contribute to broader inflationary pressures on essential food items. Historically, pricing decisions by major cooperatives like Amul often influence other dairy cooperatives and private players, potentially leading to a wider increase in milk prices nationwide.

This move highlights the continuous challenges faced by the dairy industry in balancing consumer affordability with producer profitability amid fluctuating input costs and market dynamics. Consumers can expect to see the new prices reflected at retail outlets from Tuesday, May 14. The federation's decision underscores its ongoing efforts to manage escalating production costs while striving to provide fair returns to millions of dairy farmers, a significant aspect of India's agricultural economy.