Milk Prices – Amul and Mother Dairy Raise Rates Amid Rising Costs

Milk Prices –  Consumers across India are set to pay more for daily milk purchases after two of the country’s biggest dairy brands announced fresh price revisions. Amul and Mother Dairy have increased milk prices by Rs 2 per litre, citing higher operational and procurement expenses linked to rising input costs.

Fresh Milk Rates Revised Across Major Cities

The Gujarat Cooperative Milk Marketing Federation (GCMMF), which sells products under the Amul brand, confirmed on Wednesday that prices of its fresh pouch milk variants would go up by Rs 2 per litre nationwide from May 14. The increase applies to several commonly purchased milk categories distributed across urban and rural markets.

Mother Dairy also announced a similar revision for its liquid milk portfolio. The company said the updated rates would come into effect from Thursday in markets where its products are sold. The move comes months after both dairy companies implemented earlier price increases during 2025.

Rising Production Expenses Behind Decision

According to GCMMF, the latest revision was driven by a steady rise in the cost of milk production and distribution over the past year. The federation pointed to increasing prices of cattle feed, fuel, transportation, and milk packaging materials as key reasons behind the higher retail rates.

Industry observers note that transportation and energy-related expenses have remained elevated in recent months, adding pressure on food supply chains. Global geopolitical tensions, including the ongoing conflict in West Asia, have also contributed to inflation in fuel-linked sectors, indirectly impacting dairy operations.

Farmer Procurement Prices Also Increased

GCMMF stated that its member unions have simultaneously raised milk procurement prices paid to dairy farmers. The federation said procurement rates were increased by Rs 30 per kilogram of fat, representing a rise of around 3.7 percent compared to May last year.

The cooperative body reiterated that a significant share of consumer spending on milk products directly reaches rural milk producers. According to the federation, nearly 80 paise from every rupee spent on dairy products is transferred to farmers, supporting rural incomes and dairy farming communities.

Mother Dairy Highlights Procurement Pressure

Mother Dairy said the decision to revise prices was necessary because of higher procurement costs paid to milk producers. The company indicated that maintaining a stable supply chain while ensuring fair compensation to farmers had become increasingly expensive in the current market environment.

Analysts believe dairy companies are attempting to balance farmer welfare with operational sustainability as inflation continues to affect agricultural inputs and logistics. Higher feed prices and energy costs have especially impacted the dairy sector over the past several quarters.

Consumers May Feel Additional Household Burden

The latest increase is expected to add to household expenses, particularly for middle-class and lower-income families that rely heavily on milk for daily consumption. Milk remains a staple product in Indian homes and is widely used for beverages, cooking, and nutritional needs.

Retail inflation in food categories has remained a concern for policymakers and consumers alike. Economists say recurring increases in essential commodity prices could influence overall household spending patterns in the coming months.

Despite the price hike, industry experts believe demand for packaged milk is likely to remain stable because of its essential nature and consistent consumption across the country.