Amul Does Not Plan To Increase Milk Prices As Of Now, Targets Rs 66,000 Crores Turnover

Amul, dairy products brand seller, is expecting 20% growth in its revenue this fiscal to around Rs 66,000 crore on rising demand, its MD Jayen Mehta said. Amul dairy brand is a part of Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF), it registered a turnover of Rs 55,055 crore in 2022-23, up 18.5% over previous year, as per PTI interview.

According to the report, the MD said that the company had clocked a strong growth in revenue last fiscal, due to the significant rise in demand for branded products after COVID.

Jayen said "We expect the sales momentum to continue across our product portfolio. Demand is shifting from unorganised to organised players," Further he also added that the federation is focusing on growing organic food and edible oil businesses, which are currently very small.

When he was asked about milk prices, Jayen, "We have no plans to increase rates as of now".

In last one year the input cost has gone up by 15%, therefore the cooperative was forced to hike retail prices to some extent, he pointed out. While the prices were not increased because of Covid in 2020 and 2021, but last year they were raised few times. He further pointed out that GCMMF passes on around 80% of retail prices to dairy farmers.

"Farmers are getting good prices. So, milk supply is improving," he said, the flush season will also start soon in South India, which will boost supply. Jayen shared that in March the GCMMF's milk procurement increased and will rise this month as well.

He noted that after 2022 Covid demand was high, and its trend would continue but the pace would be moderate this year on base effect. He also said the demand-supply situation would remain balanced in near future.

GCMMF currently has 98 milk processing plants across the country with an installed capacity of 470 lakh litres per day. It is collecting on an average of 270 lakh litres per day. However in next two years the federation will expand capacity by 30-40 lakh litres per day, the MD said.

The federation reported 21% growth in fresh products, which contributes 50% to its turnover and ice cream range grew by 41% in the last fiscal.

"We have achieved volume sales growth in all product categories. Pouch milk, which is the highest turnover product, has shown volume growth in double digits. Apart from this, our products like butter, ghee, Ice Cream, UHT milk, flavoured milk, paneer, and fresh cream have also shown double-digit growth," Jayen had said recently.