Amul raises milk prices by up to Rs 3 per litre, fifth hike since 2021

MUMBAI: In another shock to consumers, Amul Dairy has raised the rate of most varieties of milk by up to Rs 3 per litre. The company had increased prices three times in 2022 -- in October, August and March.

This is the fifth successive increase since 2021.

The significant change is that this time, the one rupee rebate given to buyers of 1 litre packs has been abolished. The 1 litre pouch will now cost exactly double the half litre pack.

The company issued a revised price list for Mumbai, UP, Delhi, Hyderabad and Kolkata markets Friday. The hike will not be implemented in its home state of Gujarat.

The hike varies from Rs 1-3 on packs ranging from 500 ml to 1 litre. Popular variants including Amul's toned, cow milk and full cream milk are affected. A 500 ml pouch of Amul Gold (full cream) will cost Rs 33 as against Rs 32, while the 1 litre pack is priced Rs 66 over Rs 63 earlier. A 500 ml pouch of cow milk will cost Rs 28 over Rs 27 while the 1 litre pack will come for Rs 56 as compared to Rs 53. The regular teatime variant Amul Taaza goes up from Rs 26 to Rs 27 for half litre and Rs 54 from Rs 51 for 1 litre.

Amul's new managing director Jayen Mehta, who took over from outgoing MD R S Sodhi in January, said the company had been forced to undertake price revisions. "Well, I am a consumer too so I understand (public sentiment). But we as a cooperative are grappling with the high cost of feed, cattle fodder, labour and fuel. We are paying dairy farmers a higher remunerative price to sustain their interest in the business. We have to keep producers happy. And our price revision is always lower than the general rate of food inflation." However, food inflation is soaring in recent years so Amul's price hikes pale in comparison.

Mehta said that Amul last undertook a price revision across variants in August 2022 and before that in March 2022. "Both times the revision was Rs 2 per litre so it is not as high as it is perceived to be. This time too, the increase is just one rupee on the 500 ml pouch. The rate of the 1 litre pack has been brought on par. Ours is a cooperative so there is no profit motive," he said.

The October 2022 hike had encompassed its buffalo milk and full cream (Amul Gold) variants.

Mehta said, "We did not even raise our rates in December 2022 when Mother Dairy did so and overshot our price. But for how long can we keep selling cheaper than others. We had some catching up to do. We had not effected any hike during Covid when markets were closed. But now markets have opened."

Consumers as well as Amul's retailers voiced upset. A vendor in Andheri said, "Our margins have remained the same in actual terms for years. The company does not pay us in percentage. So despite the consumer paying more with every price revision, the seller continues to get a paltry sum per litre."

However, Mehta denied this was so. He said retailers' margin is linked as percentage of MRP.

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