Price Hike Explained
Nationwide, milk drinkers are facing a price increase of Rs 2 per litre for key milk products from both Amul and Mother Dairy, with the new rates commencing
on May 14. This adjustment, confirmed by the Gujarat Cooperative Milk Marketing Federation (GCMMF) for Amul and subsequently by Mother Dairy for its liquid milk range, reflects a significant rise in the costs associated with dairy production. The increase, equivalent to approximately 2.5 to 3.5 percent of maximum retail prices, is positioned as being lower than the general trend of food inflation. The decision stems from mounting input expenses that affect the vast network of dairy farmers associated with these cooperatives. These rising costs include substantial hikes in cattle feed, packaging materials, and fuel, which have cumulatively put pressure on the dairy supply chain over the past year. Furthermore, member unions have increased their payments to dairy farmers by Rs 30 per kilogram of fat, marking a roughly 3.7 percent upward revision compared to the previous year, aiming to ensure the viability of milk production and support the livelihoods of these producers.
Impact on Consumers
For consumers, this price adjustment will be visible across various product sizes and types. In Gujarat, for instance, a 500 ml pouch of Amul Taaza, previously priced at Rs 28, will now be available for Rs 29, while the one-litre pack will see its price climb from Rs 55 to Rs 57. Similarly, Amul Cow Milk (500 ml) is now Rs 30 instead of Rs 29, and Amul Shakti will retail at Rs 32, up from Rs 31. Other products are also affected; a litre of Amul Tea Special now costs Rs 66, a Rs 3 increase from Rs 63. Amul Gold's 500 ml pack has moved to Rs 35 from Rs 34, and buffalo milk (500 ml) is now Rs 39, a Rs 2 increase from Rs 37. Mother Dairy's revised rates include an increase of Rs 2 per litre across its liquid milk portfolio. Bulk vended or token milk has gone up from Rs 56 to Rs 58 per litre. Full cream milk will now be Rs 72 per litre, compared to Rs 70 previously. Toned milk is now Rs 60, up from Rs 58, and double-toned milk has risen from Rs 52 to Rs 54 per litre. Cow milk prices have been adjusted to Rs 62 from Rs 60, and Pro Milk will now retail at Rs 72, an increase from Rs 70.
Dairy Cooperatives' Stance
Both Amul and Mother Dairy emphasize that a significant portion of the revenue generated from milk sales is channeled directly back to the farmers. The cooperative structure ensures that approximately 80 percent of the money received from customers is returned to milk producers, according to GCMMF. This latest price revision is intended to help sustain milk production levels and provide ongoing support to farmer incomes, thereby ensuring a stable supply chain. Mother Dairy echoes this sentiment, stating that its decision was necessitated by a consistent rise in farmer procurement prices, which have increased by about 6 percent over the past year. Despite continuous efforts to mitigate the impact on consumers, the company noted that the revision represents only a partial pass-through of increased costs. This aims to strike a delicate balance between supporting farmer welfare and maintaining consumer interests. Mother Dairy further highlights that between 75 to 80 percent of its milk sales realization is allocated towards procurement payments to farmers, a crucial step in sustaining rural livelihoods and guaranteeing uninterrupted milk availability for consumers. The previous price adjustment for Mother Dairy occurred in April 2025, while Amul's last price increase took effect on May 1 of the current year, having maintained unchanged prices since June 2024.
