Amul raises milk prices for 3rd time this year as India battles rising inflation ahead of Diwali

Food inflation surging beyond 8 per cent is largely responsible for the consumer price index, which indicates how much households spend, rising to 7.4 per cent. As monsoon shows no signs of slowing down halfway into October, crops have been hit along with green fodder supplies. The impact of this on cattle farms is most likely responsible for Amul increasing milk prices, just ahead of the festive season.

Won’t be applicable to Gujarat

This is Amul’s third hike this year, but Gujarat will be exempted from it, as full cream milk will now be available for Rs 63 per litre instead of Rs 61. The cooperative’s price rise comes after a similar hike was introduced in August, alongside Mother Dairy’s move to make dairy costlier. Last month, Tamil Nadu’s milk cooperative Aavin also raised prices of 17 milk products including khoya. Diwali sweets becoming more expensive due to costly dairy may also leave a bitter taste, or the developments may lead to adulteration.

Hit by disease and protests

Last month, Amul’s production was disrupted by Maldhari protests against a ban on stray cattle in Gujarat which was later rolled back. The lumpy skin disease, which has killed more than 75,000 cattle across India, had limited effect on milk production. But there are concerns about long-term impact of the ailment on fertility of cattle, that can cause major disruptions in future.

Big plans afoot for milk production

Amidst these developments, Home Minister Amit Shah had recently announced plans to merge Amul and five other cooperative societies, into a multi-state cooperative society. The strategy aimed at doubling milk production, will also develop MSCS as a body for certifying dairy for exports, and to send money directly to farmers in their bank accounts. The minister also added that India is exploring Sri Lanka, Bangladesh, Nepal and Bhutan as markets for exports.