Amul, Mother Dairy Raise Milk Prices by ₹2 Per Litre From May 14

Amul and Mother Dairy milk prices have been increased by ₹2 per litre across key variants, with dairy firms citing rising feed, fuel and packaging costs behind the latest revision.

Milk consumers across several cities, including Delhi-NCR, Gujarat and other major markets, will pay more for daily milk supplies starting Thursday after leading dairy brands Amul and Mother Dairy announced a price hike across multiple categories.

First Revision Since 2025

The Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets Amul products, said the increase would come into effect from May 14. According to the federation, the hike has been necessitated by rising input costs, particularly cattle feed, transportation and packaging expenses.

With the latest revision, Amul Taaza will now cost ₹57 per litre, while Amul Gold has been priced at ₹70 per litre in several markets. The company said the increase works out to roughly 2.5% to 3.5% across variants.

This is Amul’s first price increase since May 2025. Before that, the cooperative had revised rates in June 2024.

Shortly after Amul’s announcement, Mother Dairy also confirmed a similar ₹2 per litre increase across its milk portfolio.

Input Costs Rising

Industry officials said operational costs for dairy cooperatives have continued to rise over the past year, putting pressure on procurement and distribution networks.

According to officials familiar with the matter, cattle feed prices have remained elevated in many states, while transportation expenses have increased due to higher fuel costs. Packaging materials have also become more expensive over recent months.

Dairy sector executives said the latest revision was aimed at balancing farmer payouts and operational sustainability without sharply burdening consumers.

The increase comes at a time when household budgets are already under pressure from rising food prices in several categories.

How Amul’s Model Functions

Amul operates through a three-tier cooperative structure that directly connects milk producers to the dairy supply chain.

At the village level, farmers are members of dairy cooperative societies. These societies are linked to district milk unions, which handle milk procurement and processing. The final marketing and distribution of products are managed through GCMMF at the state level.

The cooperative model is often highlighted as one of India’s most successful rural business frameworks. Management institutes and business schools have frequently studied the structure for its farmer-led ownership model.

According to federation estimates, nearly 86 paise from every ₹1 earned through milk sales goes directly to farmer-members, while the remaining amount is used for operational expenses.

Massive Daily Collection Network

Milk collection begins before sunrise in large parts of Gujarat every day. The state has around 18,600 village-level dairy cooperative societies connected to 18 district milk unions spread across 33 districts.

More than 36 lakh farmers are linked to the network.

Collection activity typically starts around 5 am, when farmers bring fresh milk to local centres. Automated systems measure both quantity and fat content before entries are digitally recorded.

Payments are transferred directly into farmers’ bank accounts at fixed intervals. Amul has also expanded digital tracking systems through mobile applications that allow farmers to monitor milk quantity, fat percentage and payment status.

Support Services Expanded

Apart from procurement, dairy cooperatives also run support programmes focused on cattle care, nutrition and dairy management.

Farmers receive access to subsidised cattle feed, veterinary support and training sessions aimed at improving milk productivity. Some district unions also provide financial assistance for equipment purchases, including automatic milking machines.

Officials said such initiatives are critical for maintaining supply consistency as demand for packaged milk products continues to grow in urban markets.

Consumers Brace For Higher Bills

The latest milk price hike is expected to impact millions of households, tea vendors, restaurants and small food businesses that depend heavily on packaged milk supplies.

Retailers in several cities said revised price stickers and updated billing systems were being rolled out late Wednesday evening ahead of implementation.

Industry observers believe further price stability will depend on fodder availability, fuel costs and monsoon conditions over the next few months. The Amul milk price hike is also likely to influence pricing strategies across regional dairy brands.