The decision by the Gujarat Cooperative Milk Marketing Federation (GCMMF) to raise Amul milk prices by Rs 2 per litre nationwide from May 14 highlights persistent inflationary pressures on the dairy sector.
Rising Input Costs Drive Price Adjustment
GCMMF stated that the increase is necessary due to a substantial rise in the cost of operations and milk production. Key factors cited include escalating expenses for cattle feed, milk packaging film, and fuel over the past year. This marks the latest price adjustment for consumers, following a previous increase on May 1, 2025.
Farmer Support Amidst Inflation
Simultaneously, GCMMF's member unions have increased the procurement price for milk farmers by Rs 30 per kg of fat. This represents a 3.7 per cent increase over May 2025 figures, signaling an effort to support dairy producers facing their own rising costs, particularly for feed.
Consumer Impact and Market Context
The price hike translates to approximately a 2.5-3.5 per cent increase per litre for consumers. GCMMF emphasized that this rise is positioned below the average food inflation rate. As a leading supplier of milk in India, Amul's pricing decisions often influence broader market trends and consumer spending on essential dairy products.
