Today, households nationwide are greeted with news of an increase in milk prices by ₹2 per liter, effective June 3, 2024, as announced by Amul. This adjustment comes in response to escalating operational and production expenses, according to the Gujarat Cooperative Milk Marketing Federation (GCMMF).
New Prices for Amul Milk Varieties
The latest price revision marks the first increase in Amul milk prices since April 2023. Similar adjustments are anticipated from other leading brands such as Parag and Mother Dairy.
Reasons Behind the Price Hike
The decision to raise prices is underpinned by several factors, including:
- Higher Transportation Costs: Escalating transportation expenses have contributed to the overall cost increase.
- Rising Fodder Prices: Heat-induced fodder price hikes have added to the operational expenses of milk production.
- Farmer Demands: Milk producer unions have advocated for better rates, necessitating adjustments in consumer prices.
Jayen Mehta, Managing Director of GCMMF, elucidated that the price hike is imperative to offset escalating production costs for farmers. Notably, the increase represents a modest 3-4% rise in Maximum Retail Price (MRP), which is lower than the average food inflation rate. GCMMF ensures that approximately 80 paise of every rupee paid by consumers is channeled back to milk producers, ensuring equitable compensation.
Impact on Consumers and Industry
The revised prices aim to sustain remunerative rates for milk producers while incentivizing higher milk production. This measure is pivotal in safeguarding the livelihoods of milk producers and upholding the stability of the supply chain.
As consumers adapt to the increased milk prices, they are urged to recalibrate their budgets accordingly. While the hike is moderate, it underscores the broader inflationary pressures permeating various sectors of the economy.
