GCMMF, India's biggest dairy cooperative which markets dairy products under the Amul brand, expects an 18% growth in turnover this fiscal year to over Rs.46000 crore due to increased demand, according to Managing Director R S Sodhi.
Despite the COVID-19 epidemic, Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) reported a 2% increase to Rs.39200 crore in the 2020-21 financial year.
"We expect about 18% increase this fiscal year to about Rs.46000 crore," Sodhi added. He noted that demand for various products, such as butter, ice cream, and milk, has increased.
Sodhi also predicted that volume increase will be around 15%. The GCMMF's turnover increased marginally in the previous fiscal year, despite ice cream sales falling 35% due to a nationwide lockdown throughout the summer to combat the COVID-19 pandemic. The commodity business of products like skimmed milk powder (SMP) was also impacted.
He stated that the cooperative sells 150 lakh liters of milk every day, with Gujarat contributing about 60 lakh liters, Delhi-NCR 37 lakh liters, and Maharashtra 20 lakh liters. It also offers milk in the states of Punjab, Uttar Pradesh, and Kolkata.
The GCMMF has a processing capacity of nearly 400 lakh liters per day installed. It has raised milk prices twice this fiscal year.
Due to a rise in input costs, the GCMMF hiked milk prices by Rs.2 per liter in India on July 1.
It announced another Rs.2 per liter rise last week, effective from March 1, citing an increase in milk procurement prices.
In a statement on February 28, the GCMMF had said that the increase of Rs.2 per liter translates into a 4 per cent increase in the MRP which is much lower than average food inflation.
"It is worth noting that Amul has only increased its fresh milk category price by 4% each year over the previous two years," the GCMMF added.
This price increase is being implemented owing to an increase in the expenses of electricity, packaging, transportation, and cattle feed, which has resulted in an increase in the overall cost of operation and milk production.
"Considering the rise in input costs, our member unions have also increased farmers' price in the range of Rs.35 to Rs.40 per kg fat which is more than 5% over the previous year," the GCMMF said.
Amul's policy is to pay milk producers around 80 paise for every rupee paid by consumers for milk and milk products to milk producers.
"The price revision will assist in maintaining remunerative milk prices for our milk farmers and encouraging them to increase milk production," the GCMMF stated.
Following in the footsteps of AMUL, big milk providers Mother Dairy and Parag Milk Foods have raised their prices by Rs.2 per liter.
