Amul and Mother Dairy increase milk prices by ₹2 per liter due to rising input costs and higher farmer procurement prices.

  • Leading dairy brands Amul and Mother Dairy have increased milk prices by ₹2 per litre across key variants from May 14.

  • The hike is the second price revision by both companies in the last 13 months.

  • Rising cattle feed, packaging, fuel and procurement costs have been cited as the main reasons behind the increase.

  • The move is expected to push food inflation higher and may trigger similar hikes by regional dairy players.

  • Both companies said a large share of their earnings continues to be passed on to milk farmers.

Amul and Mother Dairy, two of India's leading dairy companies, have announced a ₹2 per liter rise in milk pricing for a number of varieties under the Amul milk price hike. The new rates will take effect on May 14. The two large dairy brands have increased prices twice in the last 13 months and this move is expected to encourage local dairy companies to do the same.

Major fresh pouch milk variants sold across India are affected by the increase, according to the Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets products under the Amul brand. Amul raises milk price as the cooperative said the change translates to an increase of around 2.5 to 3.5 percent per liter, which remains lower than the average food inflation rate.

According to GCMMF, increased production and operational expenses, such as the price of fuel, milk packaging film, and cattle feed, have contributed to the increase in milk prices over the past year. Furthermore, the company claims that its member unions have raised farmers' procurement costs by ₹30 per kilogram of fat, which represents a 3.7 percent increase from May 2025.

Mother Dairy announced a similar ₹2 per liter increase across its liquid milk variants. The company said the revision was necessary due to a sustained rise in farmer procurement prices, which have increased by nearly 6 percent over the last year despite efforts to minimize the burden on consumers.

Amul milk price for 500 ml pouches are now cost at ₹30 for Taaza, ₹31 for Cow Milk and ₹36 for Gold in Delhi-NCR and Uttar Pradesh as an effect of the move. The price of buffalo milk has increased more dramatically, by ₹4 per liter, to ₹80 per liter.

Mother Dairy has changed the price of toned milk from ₹58 to ₹60 per liter, while double-toned milk will now cost ₹54. The cost of a liter of full-cream milk has also increased to ₹72.

Further price changes may follow if effort costs remain high, potentially influencing milk increase trends and customer purchasing behavior across India.  

Thus, Business Fortune is of the view that rising dairy costs may continue impacting household budgets and overall consumer spending nationwide.