Tuesday 3 April 2012

Amul milk to cost Rs 2 per litre more

AHMEDABAD: Milk prices are set to soar yet again. Rising inflation and increase in excise duty on packaging material for milk pouches are likely to make milk dearer by Rs 2 per litre, said R S Sodhi, managing director of Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets Amul milk across the country. While he did not say when the price hike will come into effect, sources said it could happen over the next couple of months. GCMMF sells 80 lakh litres of fresh pouched milk everyday. The remuneration to farmers, who supply milk to the federation, has gone up 50 per cent over the last three years. "We need to compensate the farmers in times of rising costs and inflation. Although the hike will not be too steep, consumers will still have to share the burden," said Sodhi at a function to launch Amul's whey protein malt beverage for children in Ahmedabad. Consumers are already paying 11% more than what they were paying last year. "Last year the procurement price was increased by 11 per cent, while this year we will give 14-15 per cent more prices to farmers," said Sodhi. GCMMF plans to increase prices by 5-7 % in 2012-13. GCMMF has already increased the price of buttermilk by Re 1 per litre in Gujarat from Sunday. Milk prices increased twice during 2011 in Gujarat. GCMMF first hiked prices of standard and double toned milk by Rs 2 and Re 1 per litre, respectively, in April 2011. Three months later, the rates were revised again. The price hike in July 2011 was the 14th price hike introduced by GCMMF since 2006. After the price revision, consumers started paying Rs 36 per litre for Amul Gold whereas Amul Shakti cost Rs 33 per litre. Even Amul Slim & Trim now cost Rs 25 per litre for consumers. GCMMF is planning an investment of Rs 3,000 crore over the next five years towards capacity enhancement and new product development. Source-The Times Of India

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