Amul, Mother dairy announce hike in milk prices

INDIA – Amul and Mother Dairy, India’s two largest dairy product retailers, have announced a Rs 2 per litre hike in milk prices, adding to inflationary pressures and increasing the burden on household budgets.

The Gujarat Cooperative Milk Marketing Federation (GCMMF), which sells milk and dairy products under the Amul brand, said in a statement that it has “increased the prices of fresh pouch milk by Rs 2 per litre in major milk-selling variants/packs across India.

Mother Dairy also confirmed that it has revised the consumer prices of its liquid milk variants by Rs 2 per litre. GCMMF had last increased milk prices on May 1, 2025, while Mother Dairy revised rates in April 2025.

The latest hike by the country’s two biggest organised milk retailers is expected to further push food inflation, which has already risen in recent weeks amid the conflict in West Asia.

According to news agency PTI, food inflation crossed 4 per cent in April, and the rise in milk prices is expected to add to consumers’ financial strain.

Explaining the decision, GCMMF said the hike translates to an increase of around 2.5 to 3.5 per cent per litre, which is still lower than the average food inflation rate.

“The price hike is being done due to an increase in the overall cost of operation and production of milk. There is a substantial increase in the cost of cattle feed, milk packaging film and fuel during the year,” GCMMF said.

The cooperative also noted that its member unions have increased farmers’ procurement price by Rs 30 per kg of fat, amounting to a 3.7 per cent rise over May 2025 levels.

Mother Dairy said, “The revision has been necessitated in view of the sustained increase in farmer procurement prices, of around 6 per cent over the past one year, despite continued efforts to limit the impact on consumers”

It added that the increase is only a partial pass-through of rising costs and is aimed at “maintaining a fair balance between farmer welfare and consumer interests”.

Both companies said they pass on nearly 75-80 per cent of their sales realisation to milk producers. Mother Dairy currently sells around 55 lakh litres of milk every day and remains one of the leading milk suppliers in the Delhi-NCR region.

GCMMF reported an 11% rise in turnover to US$7.93 billion (Rs 73,450 crore) in the last fiscal, compared to Rs 65,911 crore in the previous year. The total turnover of the Amul brand also crossed the US$12 billion (Rs 1 lakh crore) milestone in 2025-26, driven by strong demand for dairy products.

Mother Dairy, a wholly-owned subsidiary of the National Dairy Development Board (NDDB), posted a 17 per cent increase in turnover to US$2.16 billion (Rs 20,300 crore) in the last fiscal year.

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