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Resource centre on India's rural distress
 
 

Milk catches onion fever


After the onion onslaught, milk misery.

Amul has decided to raise milk prices by Re 1 to Rs 2 a litre, setting the stage for similar hikes by other producers across the country. Dairy products such as butter, ghee and cheese are likely to become dearer, too.

The Gujarat Co-operative Milk Marketing Federation, which sells products under the Amul brand, said the higher prices would be effective from December 30 in Gujarat and Delhi and January 3 in other parts of the country. This is the third time Amul prices have gone up this year, the last being in February and July.

R.S. Sodhi, managing director of the Gujarat co-operative, said: “We had to increase prices as the dairy farmers have been reeling from inflation. The prices of feedstock, labour and fuel, including gas, have all gone up.”

The co-operative sells around 29 lakh litres of Amul milk daily in New Delhi, Calcutta, Mumbai and several other cities.

The milk pain comes at a time the Congress-led UPA government is struggling to control soaring vegetable prices, including that of the politically sensitive onion. Food inflation numbers collated till December 11 suggest that milk prices have gone up 18 per cent on an annualised basis.

After the hikes, the price of the popular Amul Taaza (toned) will be Rs 25 per litre. Slim and Trim (skimmed milk) will cost Rs 23 per litre. Amul-Gold — a tetra pack full cream brand with long shelf-life — will cost Rs 34 per litre in Calcutta, Mumbai, Delhi and parts of Gujarat. The price of the Shakti brand will go up to Rs 30.