Nagpur – Did you notice that you were paying more for milk this morning than usual? This is due to the Gujarat cooperative Milk Marketing Federation (GCMMF), the dairy giant that markets milk and milk products under the brand name ‘Amul,’ raising retail milk prices on Tuesday.
Milk prices have already been raised by Mother Dairy. Milk prices have risen by Rs 2 per litre, or 4%, with the revised prices taking effect today, Wednesday, August 17.
How much and why has Amul raised the retail price of milk?
According to an official press release issued by Amul on Tuesday, the company has decided to raise the retail price of fresh milk by Rs 2 per litre across the country.
According to Amul’s press release, the price increase in the MRP is 4%, which is lower than the current rate of inflation. “This price increase is being implemented due to an increase in the overall cost of operation and milk production.” The cost of cattle feeding alone has increased by approximately 20% compared to last year. Given the rise in input costs, our member unions have raised farmers’ prices by 8-9% over the previous year, according to the release.
“Dairies across the country are reporting an 8-10% ion milk collection shortfall,” said Dasrath Mane, chairman and managing director of Sonai. Even though the rainy season is in full swing, which should ideally allow for easy and abundant availability of green fodder, the decrease has occurred. But things didn’t quite work out that way.”
“The continuous and heavy rain in most parts of the country has resulted in lower yield of green fodder,” he added. Protein and mineral mixtures have also seen price increases, raising the cost of cattle feed,” he explained. Overall, these price increases have resulted in lower milk yields and collection at dairies.
“Compared to the previous year, the cost of milk production has increased.” The cost of cattle feed alone has increased by more than 25%. In addition, the cost of operations has risen. Transportation, logistics, manpower, and energy costs are rising. Milk procurement rates have increased by 15-20% over the same time last year due to rising input costs,” he said.
What’s the future outlook for milk prices?
Before the flush season begins in October, the majority of dairies have discussed additional milk price increases. Animals in the dairy industry naturally produce more milk during the flush season due to abundant access to green food and water. “We can expect price increases in the retail and procurement markets until the flush begins,” said a private dairy owner from Maharashtra.