April 17, 2017


Amul Dairy raises milk procurement price for sixth time in a year



India's Amul Dairy will increase milk procurement price paid to farmers by Rs20 (US$0.31) per kilo fat, The Times of India reports.


From April 11 onwards, Amul's milk producers will be paid Rs630 (US$9.74) per kilo fat by the union, an increase from the current Rs610 (US$9.43).

"This increase has become necessary due to sudden changes in the climatic conditions," Amul Dairy's managing director Dr. K. Rathnam explained. "We are witnessing a decline of 50,000 litres per day procurement since last fortnight. This is usually seen in the month of May."


The move is in response to the rise in feed and fodder costs, and to ensure that farmers are able to cope with maintaining cattle with higher input costs, Dr. Rathman added. It also marks the sixth time within a year that the procurement price was raised.


In April 2016, Amul was paying Rs570 (US$8.80) per kilo fat of milk, according to The Times of India.


After the price increase, farmers will earn Rs1.30 (US$0.02) per litre more for buffalo milk with 6% fat, while they will earn 90 paise more per litre for cow milk with 3.5% fat.


In last 12 months, procurement prices for buffalo milk spiked by Rs3.70 (US$0.06) per litre, and cow milk by Rs2.70 (US$0.04) per litre.


"While the consumer price has increased by 4-5 % after the Rs2 (US$0.03) per litre price hike, the price that we pay to farmers has increased by 10.5 percent in a year," said Rathnam.


- Image's source: Rai University

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