Amid rising input costs, Indian Dairy brand Amul has decided to increase the prices of milk by Rs 2 per litre with effect from Wednesday.
Post the revision in price, the cost of Amul Gold in Ahmedabad and Saurashtra markets will be Rs 31 for every 500 ml, Amul Taaza will be Rs 25 for each 500 ml, and Amul Shakti will be at Rs 28 for every 500ml, it said in an explanation on Tuesday.
The hike of Rs 2 for each liter, Amul said in the explanation, converts into a 4 percent increment in maximum retail price (MRP) which is below the average food inflation.
“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 added.
Amul gives right around 80 paise of each and every rupee paid by customers for milk and milk items to the milk producers.
“The price revision shall help in sustaining remunerative milk prices to our milk producers and to encourage them for higher milk production,” the statement said.
The Gujarat Cooperative Milk Marketing Federation (GCMMF) is the parent firm of the dairy brand Amul.
(inputs from ANI)