India’s largest dairy Amul has raised milk prices by Rs 2 per litre. The hike in prices will be effective from Wednesday, August 17 on Amul's Gold, Shakti and Taaza milk brands. Ahmedabad, Saurashtra in Gujarat, Delhi NCR, West Bengal, Mumbai and all other markets where Amul is marketing its fresh milk will observe increase in prices, reported news agency ANI.
Post revision, the price of Amul Gold in Ahmedabad and Saurashtra will cost Rs 31 for a 500 ml packet, while Amul Taaza will cost Rs 25. Amul Shakti will now cost Rs 28 per 500 ml, said Amul in a statement Tuesday, reported ANI.
Amul took the decision to hike milk price due to increase in overall cost of operation and production of milk.
"This price hike is being done due to an increase in an overall cost of operation and production of milk. The cattle feeding cost alone has increased to approximately 20 per cent compared to last year. Considering the rise in input costs, our member unions have also increased farmers' prices in the range of 8-9 per cent over the previous year," the statement by Amul read.
About 80 paise of every rupee paid by consumers for milk and milk products is passed on to the milk producers by Amul.
"The price revision shall help in sustaining remunerative milk prices to our milk producers and to encourage them for higher milk production," the statement added.
Earlier in July, Amul had increased prices of curd, lassi and buttermilk after GST Council’s decision to impose 5% GST on packaged items.
Meanwhile, Mother Dairy, a competitor of Amul in Delhi-NCR has also raised the price of milk by Rs 2 per litre, which will be effective from Wednesday, August 17.