Amul Triggers Price War: Price Increased By Rs 2 For All Milk Products, Rs 60/Litre For Amul Gold
Amul milk prices are going to be increased by Rs. 2 per litre starting from the date 1st July across India. This change was announced on Wednesday by the Gujarat Cooperative Milk Marketing Federations. The price increase will be applicable to all the different types of milk packets sold by the company including Amul Gold, Taaza, Shakti, T-special, as well as cow and buffalo milk etc. The price is being hiked after more than one year and seven months. The reason for this hike is due to an increase in production cost, stated the company.
RS Sodhi, Managing Director, GCMMF said that the hike in the milk price became a necessity due to the escalation in food inflation. “Additionally, the cost for packaging has gone up by 30 to 40 per cent, the transportation cost by 30 per cent, and the energy cost by 30 per cent, which led to the increase in the input cost,” he said.
Price hike is lower than food inflation
Although the price hike made by Amul will negatively impact many customers amidst the rapidly increasing prices of fuel and vegetables, the company says that the price hike is way lower than the average food inflation. A company statement says that the increase of Rs. 2 per litre translates to a 4% rise in MRP, which is much lower than the average food inflation.
The price hike will help milk producers
The price rise is actually going to benefit the producers of Amul milk. This is due to the company’s policy of passing 80 paise of every 1 rupee paid by the customers to the milk producers.
Amul’s last hike
December 2019 was when the company had last hiked their milk prices. Amul had increased the price of milk by Rs. 3 per litre. The hike was implemented in Gujarat, DELHI-NCR, West Bengal and Maharashtra. At this time, the company Mother Dairy had also announced a hike in milk prices by Rs. 3 per litre. The hike was only applicable in Delhi NCR due to a lower supply.
Amul’s business increased during the pandemic
Amul’s business has grown during the pandemic as people started consuming way more milk products in lockdown. In the month of April 2020, Amul sold around 255 to 260 litres of milk every day, according to reports.