Stocks of dairy firms up after Amul, Mother Dairy hike milk prices

New Delhi: Shares of dairy companies rose on Monday on hopes these firms would follow Amul and Mother Dairy in increasing milk prices.

At 12:30 pm, shares of Heritage Foods Ltd were up 1.5% at ₹340 per share. Kwality Ltd, Prabhat Dairy Ltd, Parag Milk Foods Ltd and Umang Dairies Ltd rose 0.3-4.6%.

The Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets dairy products under the brand name Amul, hiked milk prices by ₹2 per litre in Ahmedabad and Saurashtra markets of Gujarat, Delhi-NCR, West Bengal, Mumbai and Maharashtra.

Mother Dairy also raised prices of milk in Delhi-NCR by up to ₹3 per litre.

“In the last three years, Amul has made only two price revision for pouch milk, which is only ₹4 per litre and less than 3% per annum increase in the MRP (minimum retail price). The price increase in milk is much lower than average food inflation. This year the price of cattle feed has increased by more than 35%,” Amul said statement.

According to ANI, due to increase in cattle feed and other input costs, the member unions of Amul have increased milk procurement price in the range of ₹100 to ₹110 per kg fat, which is more than 15% increase over last year for the 36 lakh milk producers of Gujarat.