Milk Dairy Amul announced on Monday about increasing milk prices by INR₹2 in Delhi NCR, Maharashtra and other states from Tuesday due to increased production costs.
The firm last revised milk prices two years back in 2017, Gujarat Cooperative Milk Marketing Federation (GCMMF) which sells milk and milk products under the Amul brand, said in a statement.
“This increase in milk prices by Rs. 2 per litre has happened after a gap of two years with an aim to provide remunerative milk purchase price to our milk producers owing to drop in milk production and increase in cost of production,” Gujarat Cooperative Milk Marketing Federation said.
The revised price come into effect from the 21st of May. However, the change in price is not for the state of Gujarat from where the firm hails. All milk unions in Gujarat increased milk purchase price by a minimum of INR₹ 30-50 per kg fat over the last couple of months.
Milk producers in India have faced a steep decline in prices of commodities such as skimmed milk produce and butter oil which has put slowed down demand and supply chain. The federation hopes to recover any losses or decline in profit with by increasing the costs of milk, and simultaneously hope this would encourage milk producers to keep inducting new animals and to keep producing milk and support their livelihood.
Cattle feed costs have increased between 60 to 100 percent over the past one year slowing during the growth and financials for milk producers.
Source : Various