Amul, India's leading dairy cooperative, has announced a price increase of Rs 2 per litre on all milk variants across the country, effective from May 14. The decision comes amid rising input costs, including feed, fodder, and transportation expenses, which have squeezed profit margins for dairy farmers.
Price Hike Details
The revised prices will apply to full cream milk, toned milk, double toned milk, and other variants sold under the Amul brand. For instance, a litre of Amul Gold (full cream) will now cost Rs 66 in Delhi, up from Rs 64, while Amul Taaza (toned) will be priced at Rs 56 per litre, compared to Rs 54 earlier. The exact increase may vary slightly across cities due to local taxes and logistics.
This is the second price revision by Amul in 2025, following a Rs 2 per litre hike in January. The company had earlier absorbed cost pressures but was forced to pass on the burden to consumers as input costs continued to rise.
Reasons Behind the Hike
Amul cited several factors for the price revision:
- Rising feed costs: The prices of cattle feed ingredients like maize, soybean meal, and oil cakes have increased by 15-20% in the past year.
- Higher transportation costs: Fuel prices and logistics expenses have gone up, impacting the supply chain.
- Increased procurement prices: To ensure fair returns to farmers, Amul has raised the procurement price of milk by Rs 3-4 per litre over the last six months.
- Inflationary pressures: General inflation in the dairy sector has contributed to the need for price adjustments.
Impact on Consumers
The price hike is expected to increase the monthly milk bill for an average household by Rs 60-100, depending on consumption. While the increase is modest, it adds to the overall food inflation burden. However, Amul assured that the hike is minimal and necessary to sustain the dairy ecosystem.
Other dairy brands may follow suit, as the industry faces similar cost pressures. Mother Dairy and other cooperatives have also raised prices in recent months.
Industry Response
Dairy experts have supported the move, stating that it is essential to maintain the viability of milk production. The hike will help farmers cover their costs and ensure a steady supply of milk. However, consumer groups have expressed concern over the cumulative impact on household budgets.
Amul, which controls about 15% of India's milk market, has a history of gradual price adjustments. The cooperative's pricing strategy aims to balance farmer interests with consumer affordability.
