The Gujarat Cooperative Milk Marketing Federation Ltd which markets its products under the Amul brand on Saturday raised the rates of milk by Rs 2 per litre amid the festive season. The price of full cream milk has increased from Rs 61 per liter to Rs 63 per litre.

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Popular milk brands Amul and Mother Dairy had both last hiked milk prices by Rs 2 per litre in August to compensate for the increase in procurement costs. Before this, prices were increased in March.

Today’s hike in price, which comes ahead of the festive season may impact household budgets because milk is one of the most widely consumed items.

Amul is yet to issue a statement on the price rise. However, wholesale inflation data released earlier this week indicated that the inflation rate of fodder at 25 percent remains close to a record high. It has seen a slight decline from the record level in August.

Farmers, therefore, are facing challenges in raising their cattle. And, more than ever before their earnings are being spent on cattle. Due to this, the cost of milk production has been continually increasing.

The development comes days after Union Home Minister and Cooperation Minister Amit Shah announced that Amul will be merged with five other cooperative societies to form a multi-state cooperative society (MSCS). Addressing the 70th plenary session of the North Eastern Council (NEC) last week, Shah said the process for the merger has already started.

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"The government led by Prime Minister Narendra Modi is giving priority to natural agriculture and digital agriculture and for certification of natural products, the process to form a multi-state cooperative society by merging Amul and five other cooperative societies has been started," he said. The MSCS will ensure the export of the products after its certification so that profit can go directly into the bank accounts of the farmers, he added.

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