Amul may raise milk prices by Rs 2/litre

Amul may increase milk prices marginally by 5 to 7 per cent, or up to Rs 2/litre, possibly this month, to provide better remuneration to the 32 lakh members of the 15 cooperative milk unions under the Gujarat Cooperative Milk Marketing Federation (GCMMF).

In fact, milk procurement is increasing now as producers are getting very remunerative prices. Amul itself has increased prices by about 22 per cent in the last two years. Its milk farmer-members are getting Rs 32/litre for buffalo milk (with 7 per cent fat) and Rs 21 for cow milk, besides a Rs 2/litre bonus at year-end. This is the highest price of milk paid to them in India, which is a 15 per cent increase in three years, an official said here on Monday.

The price increase is being done after the Union Government effected a 7 per cent increase in the dearness allowance of its employees, and increase in fuel prices. “Our milk farmers should also get similar benefits,” Mr R S Sodhi, Managing Director, GCMMF, which markets the Amul brand dairy and food products, told reporters.

Interestingly, the Indian dairying industry is now facing the problem of glut. “India now has a stock of 1 lakh tonnes of skimmed milk powder. We have requested the Centre to lift the ban on its export imposed last year. We have more supplies than demand and India will have no shortage of milk in the next two years,” said Mr Sodhi.

With the GCMMF offering attractive prices, its daily milk procurement increased from 120 lakh litres in 2010-11 to 145 lakh litres now and is set to increase to 180 lakh litres in the next five years.

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