Amul Dairy raises milk procurement prices from June 1

Vadodara: Amul Dairy on Tuesday announced an increase of Rs 10 per kg of fat in milk procurement prices for its cooperative member milk producers and milk pourers, effective June 1, citing higher input costs and pressure on the dairy sector.

The announcement was made by Amul Dairy chairman Sabhesinh Parmar.

With the revision, the procurement price for buffalo milk supplied by cooperative members will rise from Rs 865 to Rs 875 per kg fat.

As a result, the rate for buffalo milk with 6% fat content will increase by Rs 0.61 per litre, from Rs 53.44 to Rs 54.05 per litre, while milk with 7% fat content will fetch Rs 63.06 per litre, up by Rs 0.72 per litre from Rs 62.34.

Amul Dairy also announced a hike in cow milk procurement prices. The rate will rise from Rs 384.10 to Rs 388.65 per kg equivalent fat, an increase of Rs 4.55 per kg equivalent fat.

After the revision, producers supplying cow milk with 3.5% fat content will get Rs 36.68 per litre, an increase of Rs 0.43 per litre, while the procurement price for 4% fat cow milk will rise by Rs 0.45 per litre to Rs 38.68 per litre.

Amul Dairy also declared a final price of Rs 1,035 per kg fat for the financial year 2025-26, which it said was the highest in its history and among the highest procurement rates in Gujarat and the country’s dairy sector.

The dairy reported a turnover of Rs 15,113 crore during the year and has set a target of Rs 16,753 crore for the current financial year.

Highlighting welfare initiatives for cooperative members and cattle rearers, the dairy said it implemented several schemes during the year, including providing sexed semen at a subsidised rate of Rs 25 per dose. It also said Asia’s largest semen laboratory has been set up at Oon to improve cattle breeding, milk production and farmers’ income.

Rising Fuel, Feed And Packaging Costs Putting Pressure On Dairy Sector

Amul Dairy on Tuesday said rising input costs and adverse global economic conditions had put pressure on the dairy sector, leading to the revision in milk procurement prices.

Chairman Sabhesinh Parmar said the continuing conflict in the Middle East had affected oil-based economies and industries worldwide, with the dairy sector also feeling the impact.

He said prices of LPG, light diesel oil, packaging film, CBX and other consumables have risen sharply, while transportation expenses have risen due to high diesel prices.

Parmar said raw material prices for cattlefeed nearly doubled from year, further pushing up operational costs.

Despite the cost escalation, he said Amul Dairy continues to prioritize the interests of milk producers and cattle rearers linked to the cooperative sector.