Amul price-rise: Sodhi bats for farmers

The pride of dairy cooperative GCMMF has decided to raise the price of Amul milk by Rs 1-2 per litre. GCMMF Managing Director Mr R S Sodhi blames the price-rise on rising inflations.

The rising price of cattle feed leaves little profit for our farmers who need to be compensated for their hard work, said Mr Sodhi justifying the hike. Amul is run by cooperative and thousands of farmers are its members who reap the benefit of price rise unlike private dairy company where the profit is pocketed by a few.

But the price hike this time would not be as steep as it was in the last two years,” GCMMF Managing Director R S Sodhi said. GCMMF which supplies milk to major cities in the country had raised milk prices by about 15% in the last financial year.

The milk prices have risen to over Rs 38 per litre from Rs 20-22 per litre, around three years back. In the last three years, the remuneration paid to farmers supplying milk to GCMMF has gone up by 50%.

Meanwhile, the federation has clocked turnover of nearly Rs 11,660 crore in 2011-12, Sodhi said on the sidelines of launch of Amul PRO targeted at children. With the launch of this brand, Amul announced its foray into an estimated Rs 3,000 crore Indian milk additive beverage market.

Amul is targeting a 10 per cent market share in first year of launch, competing with chocolate flavoured brands of multinationals like Bournvita, Boost.

“With this launch we shall be challenging the MNC’s in India. We aspire to get 10% of market share in the first year of launch, of the estimated Rs 3,000 crore milk additive beverage market,” Sodhi said.

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