Amul anticipates significant growth in turnover this fiscal

Gujarat Cooperative Milk Marketing Federation (GCMMF), which sells dairy products under the Amul brand, is expecting significant growth in its turnover this fiscal year as the demand for all products, like butter, ice cream, milk, has improved.

During FY21, GCMMF had posted a marginal growth of 2 per cent to Rs 39,200 crore despite the COVID-19 pandemic.

Managing Director RS Sodhi said that in volume terms too, growth will be around 15 per cent. In the last financial year, the GCMMF turnover grew marginally as sales of ice cream were down 35 per cent mainly because of the nationwide lockdown during the summer to curb the COVID-19 pandemic.

The commodity business of products like skimmed milk powder (SMP) was also impacted. Amul sells about 150 lakh litres of milk per day, of which Gujarat contributes around 60 lakh litres, Delhi-NCR 37 lakh litres and Maharashtra 20 lakh litres. It also sells milk in Punjab, Uttar Pradesh and Kolkata.

The GCMMF has an installed processing capacity of nearly 400 lakh litres per day. In this fiscal year, it has hiked milk prices twice.

The GCMMF hiked milk price by Rs 2 per litre across India from July 2021 due to an increase in input costs. And, again in March 2022 it announced another Rs 2 per litre increase, as milk procurement prices have gone up.

This price hike is being done due to a rise in costs of energy, packaging, logistics and cattle feed that has led to an increase in the overall cost of operation and milk production.

The price revision will help in sustaining remunerative milk prices to our milk producers and to encourage them for higher milk production, GCMMF said in a statement. After Amul, leading milk suppliers Mother Dairy and Parag Milk Foods have also increased prices by Rs 2 per litre.

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