After Amul, Mother Dairy increases milk prices by Rs 2/Litre, new prices effective June 03

In a move following Amul's recent price hike, Mother Dairy has announced an increase in the prices of its liquid milk by Rs 2 per litre in all operating markets across the country. The new prices are effective from June 03, 2024.

This decision comes at the onset of the need to offset the rising production costs the producers face, which have been steadily increasing for over a year.

The last revision of liquid milk prices by Mother Dairy was in February 2023. Despite experiencing higher prices for milk procurement in recent months, the company refrained from passing on the increased costs to consumers. The ongoing heat stress prevailing across the nation has further complicated the situation, potentially affecting milk production in the near future.

Mother Dairy allocates a significant portion, averaging around 75-80 percent, of its sales revenue from milk towards procurement, thus ensuring the sustainability of dairy farming and the availability of quality milk.

The current surge in farm prices is only partially transferred to consumers, resulting in an effective price increase of 3-4 percent. 

Meanwhile, Amul milk has also announced an increase in price by ₹2 per litre for all kinds on June 02. The price rise is going to take effect on Monday, June 3.

As a result, every market in the nation would see an increase in the price of the Amul milk packet by ₹2 per litre. The price of milk was last increased by GCMMF in February 2023.

As per Jayen Mehta, MD of GCMMF, the company that sells milk and dairy products under the 'Amul' brand, the boost is required to compensate for the higher production costs for farmers.

Following the most recent increase, the 500 ml Amul buffalo milk, 500 ml Amul Gold milk, and 500 ml Amul Shakti milk have their prices adjusted to ₹36, ₹33, and ₹30, respectively.