Price hike not more than inflation: GCMMF MD Mehta

Explaining the recent hike in Amul fresh milk category, GCMMF Managing Director Jayen Mehta told in a TV interview that the rising prices of cattle feed and rise in other inputs have necessitated this hike.

Mehta also explained that if we take the hikes of Amul products over a number of years, the average annual hike would have been in the range of 6-6.5%. Farmers have to be insulated from the inflation, added Mehta.

The best thing is that 80% of the gain accruing from hikes goes to the farmers directly, said Mehta. Being a farmers’ owned cooperative there is no middle man to eat up the profit.

It bears recalling that the Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets its dairy products under the brand name ‘Amul’, on Friday increased the prices of milk by Rs 2 per litre for all markets except Gujarat.