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This Indian city has the cheapest milk despite price hike by Amul, Mother Dairy

Prominent dairy firms have increased the prices of milk due to the rise in input costs this week. Mother Dairy, as well as Amul, both the leading milk suppliers decided to raise milk prices by 2 per litre across all variants from August 17.

These were their second hike in nearly six months. At the beginning of March, both had increased milk prices by 2 per litre.

Yesterday, The Gujarat Cooperative Milk Marketing Federation (GCMMF), which sells milk and other dairy products under the Amul brand said it has decided to increase the milk prices by 2 per litre in Ahmedabad and Saurashtra of Gujarat, Delhi-NCR, West Bengal, Mumbai and other markets effective from August 17.

The hike of 2 per litre will translate into a 4% increase in MRP (Maximum Retail Price). The company said the price increase has been done due to an increase in the overall cost of operation and production of milk. The cattle feeding cost alone has increased to approximately 20% compared to last year. Considering the rise in input costs, our member unions have also increased farmers’ prices in the range of 8-9% over the previous year,” GCMMF said.

With this price increase, a full cream milk costs around 61 per litre , tone milk around 51 per litre while a packet of double toned milk will cost around 45 per litre.

However, in Bengaluru, the milk is available for only 38 and 46 per litre. The credit for the low price goes to a Karnataka government scheme introduced by former Chief Minister BS Yediyurappa.

In 2008, the Yediyurappa government started to give an incentive of 2 per litre over and above the procurement price to farmers who supplied milk to dairy unions affiliated with the Karnataka Cooperative Milk Producers’ Federation (KMF).

In 2013, Congress Chief Minister Siddaramaiah raised the incentive to 5 per litre and again the Yediyurappa government hiked it to 6 per litre.

As per a report by Indian Express, the incentives led to an increase in supply to KMF unions from an average 30.25 lakh kg per day in 2007-08 to 74.80 lakh kg per day.

With this, the farmers ended up earning 6 extra for per litre of milk and the consumers in Bengaluru also ended up paying 14 per litre less for toned milk than those in other metropolitan cities.

The KMF sells milk with the brand name Nandini in the state.

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