Amul has announced an increase in milk prices in India. The increased prices took effect from Monday morning. While milk consumers are showing disappointment, farmers are quite happy as rural milk producers will start getting higher prices at the dairy. The increase is Rs. 2 per liter, which will impact the pockets of people living in urban areas. The prices of Amul Gold, Amul Shakti, and Amul Tea Special milk have been raised. After the hike, these can now be bought for Rs. 66 per liter, up from Rs. 64 per liter. The price of Amul Tea Special has increased from Rs. 62 to Rs. 64 per liter. This increase will directly affect consumers’ expenses.
According to the Amul company
The hike is only 3-4%, which is much lower than food inflation. Prices hadn’t increased since February 2023, so this rise comes after a long period. Amul stated that the prices were raised due to an increase in production and operational costs. Last year, Amul’s milk unions had demanded a 6-8% price increase for farmers.
According to Amul’s norms, 80 paise out of every rupee paid by customers goes to the milk producers. Additionally, the prices of yogurt have also been increased, although Amul has not provided any official information regarding this. In 2023, milk prices were raised in Gujarat, where the Gujarat Cooperative Milk Marketing Federation announced a Rs. 2 per liter increase in Amul milk prices. Consequently, the price of Amul buffalo milk became Rs. 68 per liter, and Amul Gold reached Rs. 64 per liter.
This price hike will affect urban workers and laborers, who will now have to pay Rs. 2 more per liter. Dairy production costs might also become more expensive.
Impact on the Common Man
With the Lok Sabha election results just around the corner, Amul has given a jolt to the common man by increasing milk prices. The impact of this hike will be directly felt by consumers. According to GCMMF’s announcement, the prices of Amul Gold, Amul Taza, and Amul Shakti have been raised.
Other Companies to Follow Suit
Amul is the largest dairy company in India, and other companies usually follow its lead. With Amul raising its prices, it is expected that Mother Dairy and other companies will soon do the same. Generally, milk production decreases in the summer as cows and buffaloes produce less milk, whereas production increases during the rainy season. Therefore, dairy companies tend to raise prices during this season.
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