Anand (Guj): Milk prices will go up by Re 1 to 2 per litre in Gujarat from October 3, GCMMF that markets the dairy brand 'Amul' said on Monday.

"Prices of 'Amul Gold' will increase by Rs 2 per litre, while Re 1 per litre hike will be there in other five brands - 'Shakti', 'Taaza', 'Slim & Trim', 'Cow', and 'Tea Special' in Saurashtra and Ahmedabad, where the federation does marketing," Gujarat Cooperative Milk Marketing Federation (GCMMF) managing director R S Sodhi said.

The dairies and members of federation in other parts of Gujarat will take an independent call on price hike, he said. The hike comes into effect from October 3, Sodhi said, adding that the decision was taken during the federation's board meeting held here.

The new milk prices in Saurashtra region and Ahmedabad from October 3 will be 'Gold' Rs 40 per litre, 'Shakti' (Rs 36), 'Taaza' (Rs 29), Cow (Rs 33), 'Slim & Trim' (Rs 27), 'Tea Special' (Rs 36), a federation official said.

GCMMF has cited hike in transportation cost owing to increased cost of diesel and feedstock, as the reason behind rise in milk prices.

"Firstly our transportation cost has gone up in wake of rise in diesel prices, and secondly the cost of feedstock has gone up by 30 per cent in last three months," Sodhi said.

However, the federation has ruled out any hike in milk prices in metros (New Delhi, Mumbai and Kolkata) in short term, saying that prices of full cream milk there are now at par with Gujarat.     

In the last 15 months, GCMMF has hiked milk prices roughly by 15 per cent, which it claims is still lower than the food inflation. The federation had recently announced Rs 10 hike in per kg of fat on milk procurement from farmers, taking the payout to Rs 455 per kg.

Amul has grown to be a Rs 11,668 crore brand with milk collection of 3.88 billion litres in 2011-12. The number of member societies of GCMMF now stands at 16,100, with 3.2 million members pouring milk.


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