Hyderabad: The Gujarat Cooperative Milk Marketing Federation (GCMMF), marketer of milk and milk products under the brand name Amul, has decided to increase milk prices by Rs. 2 per litre throughout the country from 1 March. This is a 4% increase in MRP.
It is worthwhile to note that in the last two years, Amul has only made a 4% increase per annum in the prices of its fresh milk. The recent price hike is because the rising costs of energy, packaging, logistics, and cattle feeding cost have increased the overall cost of operation and production of milk, the company said. "Considering the rise in input costs, our member unions have also increased farmers' price in the range of Rs. 35 to 40 per kg fat which is more than 5% over the previous year," it said.
Amul passes on almost 80 paise of every rupee paid by consumers for milk and milk products to the milk producers. The price revision will help sustain remunerative milk prices to the milk producers and encourage higher milk production, it added.