Increase in input costs, including cattle feed prices, dry & green fodder prices, cost of diesel and other inputs has prompted at least two leading milk sellers to hike milk prices by five per cent.
GCMMF, which sells the ‘Amul’ brand of milk, has decided to raise the price of all Amul milk variants by Rs 2 a litre in the Delhi and Mumbai markets, with effect from October 15.
Joining Amul is a Mumbai-based private dairy, Parag Milk Foods, owner of the Gowardhan brand of cow milk, which has implemented a similar raise in prices.
“This year, an extended monsoon has led to the scarcity of dry fodder and therefore, fodder prices have overall increased by about 30 per cent.
"Further, there has been an increase of 15 per cent in the price of cattle feed since September 2012,” said R S Sodhi, managing director, GCMMF.
“Price rise was imminent, as overall costs, including food inflation, fuel, labour cost and fodder put pressure on farmers.
"Current food inflation surged to 18 per cent and cattle feed prices increased 15 per cent.
"But Amul milk prices have increased by only 10 per cent with the latest raise,” Sodhi said.
Following the price rise, Amul Gold (full cream) milk will cost Rs 44 a litre, compared to the current price of Rs 42, while Amul Taaza (toned milk) will cost Rs 34 a litre, up from the current Rs 32.
The new price of Amul Slim and Trim double toned milk will be Rs 30 a litre, compared to the existing price of Rs 28.
The increase will be effective from October 15
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