Why Has Amul Increased Milk Prices Across India?

Among the most respected brands across an entire pantheon of products in the country, Amul has been constantly serving quality and infallible reputation where its milk and milk-based products are concerned. And it’s not a new development or one marked by suddenness; it’s been a consistent story for the period over the past five decades. You may or may not trust other brands of milk, but where it comes to Amul- you will definitely not spare an extra second before relying on a product that’s as true as its tagline: “The Taste of India!”

But tell you what! As of the last date of June, 2021, it appears that the Taste of India is about to get expensive and the confirmed piece of news does not only hold true for a particular city or region or district. Rather, as a matter of fact, Amul has confirmed that it has increased the prices of its milk for the entirety of India.

So this brings us to the first and foremost valid question- why did Amul, all of a sudden, hike its milk prices and what reasons might one of India’s most valuable and trusted companies have had so as to have initiated such a development?

Though before we get into that, what’s foremost important is to duly note that starting July 1, 2021, all milk categories sold under the Amul brand name will be getting expensive by as much as Rs 2 per litre. Now in hindsight, to a well-earning nuclear family, such a development may not actually seem all that irrational or difficult to deal with, but think of this development from the perspective of the hotel and tourism industry! Think of it from the perspective of famous coffee chains and tea houses, plenty of which are spread everywhere in India.

How will they come to deal with this sudden development.

Though, in a news piece published on the famous India Today, here are the reasons that came to light in regards to the shocker from Amul:

The dairy cooperative cited higher input costs as the reason behind the milk price hike. It said the hike will be applicable across all cities where Amul sells its fresh milk.

After the hike, the price of Amul Gold will be Rs 29 for 500 ml, while Amul Tara will cost Rs 23 per 500 ml and Amul Shakti will be available at Rs 26 per 500 ml. The Rs 2 per litre hike translates to a 4 per cent increase in MRP, said GCMMF, adding that it is much lower than the average food inflation.

GCMMF added that the price hike across the different categories of milk products comes after a gap of 1.5 years.

The company cited higher input costs as the reason behind the price hikes across its different milk brands. It said input costs have increased on account of higher transportation charges, packaging and logistics.

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But the above told, what’s rather important to note is that it is not only milk that has seen a surge in prices; essential FMCG products too, have evidenced a rise in prices, in the recent past. Products such as oil, soap and tea have all seen a higher price rate on account of the rising inflation in the country. One may not exactly call this development as a bubbly rich piece of news that would add to the excitement of reading just what is happening around India, right? And neither is this the greatest development with which to end a month and enter a new one- right?