Amul hikes milk prices by Rs 2 again

Written By Unknown on Sabtu, 25 Januari 2014 | 22.23

MUMBAI: Dairy producer Amul on Friday increased milk prices by Rs 2 per litre. This is the fourth such increase since April 2013 and has pushed up prices by Rs 8-10 per litre since that time.

Amul's Taaza brand of toned milk that sold for Rs 34 now costs Rs 36. In early 2013, it was available for Rs 24-26 per litre. Amul Gold, the full cream variant, now costs Rs 46 over Rs 44. The rate in 2013 was Rs 34-36 per litre. The Gujarat Cooperative Milk Marketing Federation (GCMMF), which owns this brand, has been increasing rates with alarming frequency. It has cited a familiar argument of "hiking prices to benefit dairy farmers". On Friday, its Mumbai representative could not say if the farmers, who constitute this wealthy cooperative, had demanded an increase or were granted it voluntarily.

The dairy blames "increased cost of cattle feed and fodder" for each spike.

"For every rupee taken from you, almost 80 paise is paid back to dairy farmers who are our owners. It is the best consumer-to-producer price ratio in this part of the world," read an advertisement by Amul on October 15. The argument of farmers' welfare was first advanced by agriculture minister Sharad Pawar when he permitted dairies to frequently increase prices in 2006. This is the 19th hike since that time. Until 2006, milk prices had remained stable for years. Other dairies are likely to follow Amul's lead as they always do. In October 2013, Mother Dairy had increased rates by Rs 2 per litre within a fortnight of GCMMF doing so, bringing rates at par.

Amul's Mumbai office admits consumers are calling to complain about the frequent increase in prices.


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