From July 1, the cost of several types of milk sold under the Amul brand will increase by Rs 2 per liter. The Gujarat Cooperative Milk Marketing Federation (GCIMMF), which markets and sells various types of milk and other goods under the Amul brand in India, announced that milk prices had been raised by Rs 2 per liter. The milk price increase is characterized by greater input costs by the dairy cooperative. The increase will be applied in all cities.
Amul Gold would cost Rs 29 after the increase, while Amul Tara will cost Rs 23 and Amul Shakti will cost Rs 26. According to GCIMMF, the Rs 2 per liter boost amounts to a 4% increase in MRP.
The price increase across all categories of milk products comes after a 1.5-year break, according to the GCIMMF.
INCREASED INPUT COSTS-
Higher input costs have been stated as the cause for the price increases across all of the company’s milk brands. Input costs have risen as a result of rising shipping, packaging, and logistics costs, according to the report.
Higher input costs have boosted the pricing of numerous important FMCG products, not only milk. As a result, prices for items such as edible oil, detergent, tea, and even packaged food grains have climbed.
Meanwhile, transportation costs have risen as a result of historically high gasoline prices.
“It’s worth noting that Amul hasn’t changed the pricing of their fresh milk category in the last 1.5 years. Since then, the entire cost of operation has increased due to rising energy, packaging, and logistics costs.
“In response to rising input costs, our member unions have boosted farmer prices by more than 6% over the previous year, ranging from Rs 45 to Rs 50 per kilogram. Amul’s policy is to pay the milk farmers around 80 paise for every rupee spent on milk and milk products. The price adjustment will help to maintain remunerative milk pricing.”