GCMMF, India's largest dairy cooperative, which markets dairy products under the Amul brand, expects an 18% increase in revenue this fiscal year to roughly Rs 46,000 crore due to increased demand, according to its Managing Director R S Sodhi.
Despite the epidemic, Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) saw a 2% increase in revenue to Rs 39,200 crore in the fiscal year 2020-21.
"We are expecting around 18% growth this fiscal year to over Rs 46,000 crore," Sodhi said. He noted that demand for all items, such as butter, ice cream, and milk, has improved.
In terms of volume, Sodhi predicts a 15% increase. The GCMMF's turnover increased little in the previous financial year, owing to a 35% drop in ice cream sales, owing to the state-wide lockdown imposed during the summer to combat the pandemic. The commodity business, which includes goods such as skimmed milk powder (SMP), was also affected.
According to him, the cooperative sells 150 lakh gallons of milk each day, with Gujarat contributing 60 lakh litres, Delhi-NCR 37 lakh litres, and Maharashtra 20 lakh litres.
In Punjab, Uttar Pradesh, and Kolkata, it also sells milk. The GCMMF has a processing capacity of about 400 lakh litres per day installed. It has raised milk prices twice this fiscal year.
Due to rising input costs, the GCMMF raised milk prices by Rs 2 per litre in India on July 1. It announced another Rs 2 per litre rise last Monday, effective March 1, citing increased milk procurement costs.
The GCMMF noted in a statement on February 28 that the increase of Rs 2 per litre amounts to a 4% increase in the MRP, which is well below average food inflation.
"It's worth noting that Amul's fresh milk category prices have only increased by 4% each year over the last two years," the GCMMF had stated.
This price increase is being implemented as a result of rising energy, packaging, logistics, and calf feed expenses, all of which have resulted in an increase in the overall cost of operation and milk production.
"In light of rising input costs, our member unions have increased farmers' prices to between Rs 35 and Rs 40 per kg fat, an increase of more than 5% over the previous year," according to the GCMMF.
Amul's policy is to pay milk producers around 80 paise for every rupee spent on milk and milk products. "The price change will assist in maintaining remunerative milk pricing for our milk producers and encouraging them to increase milk production," according to the GCMMF.
