From Tuesday, Amul will raise milk costs by Rs 2 per liter.

The Gujarat Cooperative Milk Marketing Federation (GCMMF) has raised the price of milk in all markets across India by Rs 2 per litre. The increased rates will go into effect on Tuesday.

The price of milk has been raised for the second time this fiscal year. GCMMF raised the price by Rs 2 per litre in June 2021. "The rise of Rs 2 per litre equates into a 4% increase in MRP, which is substantially lower than average food inflation," the dairy cooperative justified its choice on Monday.

Amul Gold will now cost Rs 30 per 500 ml in Gujarat's Ahmedabad and Saurashtra markets, Amul Taaza will cost Rs 24 per 500 ml, and Amul Shakti will cost Rs 27 per 500 ml. "This price increase is being implemented due to rising energy, packaging, logistics, and cattle feeding costs, resulting in an overall increase in the cost of operation and milk production. Our member unions have also enhanced farmers' prices in the region of Rs 35 to Rs 40 per kg fat, which is more than 5% higher than the previous year," according to the announcement.

"As a policy, Amul pays the milk producers around 80 paise of every rupee purchased by consumers for milk and milk products. The price adjustment will aid in maintaining remunerative milk pricing for our milk producers and encouraging them to increase milk production, according to the GCMMF.