Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets milk and milk products under the Amul brand, announced a ₹2 per litre increase in fresh pouch milk prices across major variants and packs in India, effective from May 14, 2026. According to reports from PTI, this marks the second price increase in 13 months by the two major dairy cooperatives. Separately, Mother Dairy confirmed it has revised consumer prices of liquid milk variants by ₹2 per litre, effective Thursday. The decision reflects wider inflation hitting the dairy and FMCG sectors and consumer budgets, with Amul alone having raised milk prices at least six times since July 2021. The price revision will apply to key milk products, including Amul Standard Milk, Buffalo Milk, Gold, Slim & Trim, T-Special, Taaza, and Cow Milk.
As reported by PTI, GCMMF attributed the price hike to increased operational and production costs, including substantial rises in cattle feed, milk packaging film, and fuel costs during the year. The cooperative's member unions have also increased farmers' procurement price by ₹30 per kg of fat, representing a 3.7% increase over May 2025. Amul, which reported a turnover exceeding ₹1 lakh crore in FY25-26, is grappling with tighter operational margins despite maintaining a net profit margin of 4.5% on ₹61,000 crore turnover in FY23-24. The cooperative aims to pass about 80 paise of each consumer rupee to milk producers, while the current retail price increase of 2.5% to 3.5% per litre is lower than average food inflation. The last price increase by Amul was effected on May 1, 2025.
According to PTI, the price increases by India's two largest organised milk retailers will add to food inflation, which has risen in recent weeks due to conflict in West Asia. Food inflation in April crossed the 4% mark, and the latest milk price increase will add to the burden of consumers. The decision aims to balance farmer support with consumer affordability amid broader inflation affecting the Fast-Moving Consumer Goods (FMCG) sector. Past data shows that when prices surged, about 4 in 10 households (in early 2023) cut back on milk consumption or switched to cheaper options, highlighting the strain on household budgets.
As reported by PTI, dairy stocks showed positive momentum following the announcement, with Hatsun Agro Product trading nearly 1% higher at ₹948 on the NSE and Heritage Foods up 0.28% at ₹335.30. Milkfood was trading over 1% higher at ₹61.99 on the BSE. However, stocks later lost momentum and pared their gains during the trading session.
According to PTI, analysts expect the milk price hike by Amul and Mother Dairy to be positive for dairy stocks such as Heritage Foods, Parag Milk Foods, Dodla Dairy, and Hatsun Agro Product, as it can help companies offset higher raw milk procurement and input costs, thereby supporting margins and profitability. However, dairy sector pricing trends suggest inflationary pressures may continue into FY27. Amul's cooperative model faces structural challenges with low gross margins on liquid milk, while milk being a staple means price hikes disproportionately affect household budgets, especially for lower and middle-income families. The steady rise in farmer procurement prices means even small changes in feed or fuel costs can significantly impact the entire supply chain, making balancing cost recovery with sales volume crucial for the industry.
