Amul, Mother Dairy raise milk prices Rs 2/litre nationwide as input costs bite
Effective May 14, India's two largest dairy co-ops hiked fresh milk by Rs 2/litre — a 2.5-3.5% increase — citing a 3.7-6% rise in farmer procurement costs over the past year alongside higher cattle feed, packaging and fuel expenses. Procurement makes up 75-80% of consumer price.
What happened
Amul and Mother Dairy raised fresh milk prices by Rs 2/litre across India effective May 14, citing higher cattle feed, packaging and fuel costs, and a 3.7-6%
Key facts
- Rs 2 per litre
- 2.5-3.5%
- Rs 30 per kg fat
- 3.7%
- 6%
- 35 lakh litres/day
- 75-80%
Why this matters
Sustained 3.7-6% farmer procurement inflation strengthens the case for backward integration into dairy supply (chilling centers, feed, direct farmer contracts) and screening of regional private dairies trading at compressed multiples.