Gujarat : Gujarat Cooperative Milk Marketing Federation has decided to hike prices of Amul brand milk by up to Rs 2 per litre in Delhi and NCR region from Monday.

“Amul Taaza (toned) milk will cost Rs 30 per litre from Monday in Delhi and NCR compared to Rs 29 per litre, while slim and trim shall cost Rs 26 per litre in place of Rs 25, and Amul Gold (full cream) will be Rs 40 per litre against Rs 38 per litre,” the Federation’s Managing Director R S Sodhi told agency.

The hike in milk prices shall come into effect from Monday, he said. A similar hike was affected by the dairy major in Mumbai on 11th April.

Gujarat Cooperative Milk Marketing Federation (GCMMF) which markets its products under brand ‘Amul’ had already increased prices at almost the same levels in its home state of Gujarat on 10th April.

Citing rising cost of production as the major reason behind the hike, Sodhi said expense on milk production has gone up for farmers and GCMMF has also hiked the procurement price.

GCMMF supplies nearly 20 lakh litres of milk per day in Delhi and NCR region. It is the second largest milk supplier in the region, after Mother Dairy. It had raised milk prices at similar levels in August last year.

“We have hiked the milk procurement price. The farmers are now getting up to Rs 450 per kg of fat,” Sodhi said, adding that buffalo milk now costs at Rs 33 per litre.

In the last three years, the remuneration paid to farmers supplying milk to GCMMF has gone up by 50 per cent, he said.

While Amul supplies nearly 20 lakh litres of milk per day in Delhi and NCR region, Mother dairy outlets sell around 30 lakh litres, including loose milk through vending machines.

In the last financial year, GCMMF, which supplies milk to major cities and important states, had announced a hike of around 14-15 per cent.

The federation operates a network of 52 milk processing plants –nine on hired basis– in the country and has grossed an annual turnover of USD 2.4 billion (Rs 11,660 crore) in 2011-12.

The overall turnover of brand Amul in 2011-12 stood at around Rs 16,000 crore, including sales clocked by the member dairies of the federation, a GCMMF official said.

The federation targets to increase its existing milk processing capacity from 145 lakh litres to 180 lakh litres per day over the next five years with an investment of Rs 3,000 crore, he added.