Amul and Mother Dairy price hike explained in detail

Recently Amul and Mother Dairy have declared a price hike in their milk price. The main reason behind this hike is the increase in input costs. The heavy rainfall has resulted in lower production of green fodder. In addition to that transport, logistics, manpower and energy costs have also gone up due to rising inflation. Amul and Mother Dairy price hike has been a concern for most people in India because most consume milk and milk products daily. Let’s understand the price hike and the factors behind it.

Amul and Mother Dairy milk price hike 

Constant Price Hike

Milk prices have increased in India due to price hikes of milk by leading milk suppliers like Amul and Mother Dairy by RS 2 per litre. The main reason behind this is the increase in input costs due to inflation. This is the second time that both the suppliers have increased the milk price in the last 6 months. They had increased the price of milk by Rs. 2 per litre in March too.

Increase in Input Costs

Amul said in the press release that the overall price rise effect on the MRP is 4 per cent which is still lower than the prevailing food inflation rate. Amul and Mother dairy price hike has been due to an overall increase in the cost of operation and production of milk. Amul’s press release said that the cattle feeding cost has increased by 20% compared to last year. As a result of the increase in input costs, member unions have already increased farmer’s prices in the range of 8%-9% over the previous year. 

 

Lower Yields of Green Fodder

The rainfall in India has been in abundance which shall lead to the easy availability of green fodder. But the situation is reversed. The continuous and heavy rainfall has resulted in lower yields of green fodder. Protein and mineral mixtures have also seen a price rise. This too has increased the cost of cattle feed.

Low Milk Collection

Due to continuous rainfall in milk-producing states, there has been an increase in the disease in cattle. Lumpy Skin Disease found in cattle in Gujarat has been a great concern. This has affected the milk collection in the state. The supply-demand mismatch has resulted in a price rise.  

So we can understand that Amul and Mother dairy price hike has some genuine reasons. An increase in input costs, low milk collection due to sick cattle and lower yields of green fodder has led to milk price hike in India.