RS Sodhi, managing director of GCMMF told The Indian Express that the price reduction was aimed at particular market segment so that the dairy could accommodate an increase in daily procurement of milk.
New Delhi, January 22, 2018: Milk, Ghee, curd and buttermilk of Amul will be cheaper in certain packages from Saturday as Gujarat Milk Marketing Federation (GCMMF) has decided to reduce their retail prices in Gujarat. The decision comes at a time when dairies of the state are flush with milk and many member unions of GCMMF have reduced milk procurement prices that they pay to dairy farmers.
From Saturday onward, the buttermilk pouch of 500 ml will be cheaper by Re 1. It will be available at Rs10 instead of the current price of Rs 11. Similarly, the bulk pouch of full cream milk – Amul Gold – will be cheaper by Rs 15. Against the current price of Rs 260, this five-litre pack will now cost Rs 245. This translates into reduction of Rs 3 per litre. Ghee pouch of 500 ml will also be cheaper by Rs 5. The reduced price will be Rs 232 instead of the current price of Rs 237. The Federation has also decided to cut cued price by Rs5 per litre. It will now be available at Rs 50 per litre instead of Rs 55.
However, there will be no change in the prices of other products and in other packages. Therefore, the price of Amul Gold 500 ml pouch will continue to be Rs 26 or Rs52 per litre. Likewise, toned milk – Amul Shakti and Amul Taaza – prices will also remain static at Rs 48 and Rs 40 per litre, respectively. Nor will there be any change in the price of Amul Tea Special and Amul Chai Mazza. The one-litre pouches of this milk are currently available at Rs 48 and Rs 39, respectively according to indianexpress.com.
R S Sodhi, managing director of GCMMF, told The Indian Express that the price reduction was aimed at a particular market segment so that the dairy could accommodate increase in daily procurement of milk. “We have reduced the prices of products where there was some room. We sell 70,000 litre to 80,000 litres of milk in bulk in Gujarat. We want to double or triple this so that excess milk that we are receiving is taken care of,” he said.
GCMMF is the dairy federation which markets dairy products by Amul, the largest dairy of India. Sodhi said that together with its 21 member unions, GCMMF sells around 55 lakh litres of milk in Gujarat every day. He added that hotels and restaurants purchase the milk in bulk and that the dairy sees the potential to ramp up sales in this segment by reducing prices. However, he stressed that the reduction was temporary.
Indianexpress.com further added that the cut in prices comes at a time when GCMMF and its member unions in Gujarat are flush with milk. The Federation has been procuring around 255 lakh litres of milk per day in the state. This, the MD said, was around 22 per cent more as compared to last year.
Meanwhile, a few district unions have already slashed milk procurement prices substantially over the last two months as milk supply from dairy farmers have increased due to what they are terming as “cyclical flush” – a period in which milch animals give more milk, while the demand in retail market has remained stable. This reduction ranges from Rs 50 to around Rs 90 per kg of fat or roughly Rs 2 per litre. Some unions have stopped registering new village milk cooperative societies while procuring milk only from members of registered societies only.