Amul Butter to get costlier from next week

After increasing price of milk three times this year,the Gujarat Cooperative Milk Marketing Federation (GCMMF)...

After increasing price of milk three times this year,the Gujarat Cooperative Milk Marketing Federation (GCMMF),which markets Amul brand of products,is all set to make your breakfast costlier with hike in prices of butter. The Rs 6,700-crore federation will increase Rs 10 on 500 gm pack,while 100 gm pack will cost Rs 2 more from next week.

The food processing giant says this is because of various reasons,including increase in food input cost,cattle feed and prices being paid to the farmers. The input cost has gone up as well as the prices paid to farmers per kilogram of fat over a period of time,and therefore,we have decided to increase the price, said R S Sodhi,chief general manager,GCMMF.

He added: Earlier,farmers used to get Rs 280 per kg fat which has now increased to Rs 330. The prices of cattle feed has also gone up,which had led to the increase in the cost of milk earlier and now butter.

The GCMMF had earlier written to Prime Minister Manmohan Singh to intervene and control the prices of the cattle feed,which according to Amul had gone up by 35 per cent due to low rains. It had also mentioned that the increasing cost of production is the root cause of the rise in the prices.

A total of 85 per cent of sales revenues go to the producers/farmers.

The GCMMF had also asked for a ban on exports of deoiled cake and tax relaxation for inputs that go into the production of cattle feed. The federation has a strong membership of 28 lakh farmers in Gujarat.

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