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News In Brief Business and Economy

Amul Increases Milk Prices by ₹2 per Litre Following Mother Dairy’s Hike

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Amul Increases Milk Prices by ₹2 per Litre Following Mother Dairy’s Hike
01 May 2025
5 min read

News Synopsis

India’s leading dairy brand Amul has announced a price hike of ₹2 per litre across its milk variants. This comes just a day after Mother Dairy implemented a similar price revision, citing rising input costs. The new prices will be applicable starting Thursday, May 1, 2025, as per an official statement by the Gujarat Cooperative Milk Marketing Federation (GCMMF), which manages the Amul brand.

New Prices Effective from May 1, 2025

GCMMF confirmed that the revised prices for Amul milk variants will be effective across markets from Thursday, May 1. This price adjustment aligns with the current cost pressures on dairy production and comes after a sustained period of stability in pricing.

Price Hike Reflects Moderate Inflation Impact

Amul emphasized that the ₹2 per litre increase reflects a 3–4% rise in maximum retail prices, which is lower than the average food inflation rate in the country. Despite the increase, Amul maintains that the adjustment is moderate and necessary to sustain operations and milk procurement.

No Price Hike Since June 2024

This is the first price revision by Amul since June 2024. During the interim period, the dairy major had kept prices stable despite inflationary pressures. In fact, the brand had implemented consumer-friendly measures during this time to maintain affordability and demand.

Past Consumer Benefits: Extra Milk and Discounts

Amul had offered special benefits to its consumers in the past year. Between July and December 2024, the brand provided 50 ml extra milk on 1-litre packs and 100 ml extra on 2-litre packs—without any price hike. In January 2025, Amul even reduced the price of its 1-litre milk packs by ₹1 across all markets, benefiting households across India.

Rising Input Costs Driving the Price Revision

Amul attributes the latest price increase to higher input costs, especially in procuring milk from its network of 36 lakh dairy farmers. Rising costs in cattle feed, transportation, and logistics have contributed to the decision.

“All our member unions have revised procurement rates to benefit milk producers over the past year,” the company said. The price hike ensures that farmers are fairly compensated, thereby supporting sustainable milk production.

80% of Revenue Returned to Farmers

One of the key highlights of the Amul cooperative model is its farmer-centric approach. According to the GCMMF, 80% of the amount paid by consumers is routed back to dairy farmers. This ensures that a substantial portion of the price hike directly benefits the producers.

“The majority of the price increase will be passed on to farmers, encouraging them to boost milk production,” Amul added.

Focus on Sustain ability and Farmer Welfare

Amul has reaffirmed its commitment to strengthening the rural economy through fair pricing and transparent operations. By returning most of its sales revenue to farmers, the cooperative sustains dairy farming livelihoods and boosts rural development. This strategic price increase is not only a response to cost challenges but also a move to maintain long-term sustainability in the dairy supply chain.

Conclusion

With both Amul and Mother Dairy implementing a ₹2 per litre price hike within days of each other, milk prices across India are set to rise modestly. While the decision may slightly affect household budgets, it plays a crucial role in ensuring that dairy farmers are rewarded adequately amidst rising costs. Consumers can expect the new rates to reflect on store shelves from May 1, 2025.