Dairy major Amul’s milk is going to be expensive again. A top official of Amul has indicated this. Amul Managing Director (MD) RS Sodhi said, “Prices will remain strong, I cannot say by how much. They can’t go down from here, they can only go up.” Sodhi said the Amul co-operative company has increased prices by eight per cent in the last two years, including an increase of Rs 2 per liter in milk last month. is included.
Inflation cause for concern: Sodhi emphasized that inflation in his industry is not a cause for concern. He said that the farmer is getting benefit through higher prices for his produce. The growth made by Amul and the wider dairy sector is much less compared to others, especially in comparison to the increase in cost.
Why has the price increased? Sodhi said that the increased electricity prices increase the cost of cold storage, which has increased by more than one-third. The logistics cost has also gone up and so has the case of packaging. Due to these pressures, the milk price has increased by Rs 1.20 per liter, he said. He stressed that the income per liter of farmers has also gone up by Rs.4 during the pandemic.
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He said that Amul is not bothered about such pressures as profit is not the main objective for this cooperative organization. Sodhi said global developments like the war in Ukraine are good for the Indian dairy sector. They help Indian exports as global supply chains are disrupted, he added.