Hotline: 1800 102 2007
X
Search Business Opportunities
Aug, 23 2017

Amul cuts skimmed milk prices by 6-7 per cent on weak domestic demand

This decision has accounted for a decrease of the prices by about Rs 10 per kg making the the current prices of SMPs to be around Rs 220 per kg.

Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF), which sells its products under the Amul brand has decided to cut the prices of its skimmed milk products (SMPs) by 6-7 per cent across all varieties. This, according to experts, is the result of the sharp decline in demand during the ongoing lean season, coupled with a sharp increase in supply.

This decision has accounted for a decrease of the prices by about Rs 10 per kg making the the current prices of SMPs to be around Rs 220 per kg.

"We have cut maximum retail price (MRP) of skimmed milk powder by six-seven per cent across all varieties recently because of weak demand from consumers. SMP prices are likely to remain subdued in coming months due to the commencement of new milk supply season," said R S Sodhi, managing director, GCMMF.

The price decline, however, is unlikely to impact farmers’ realisations for the supply of liquid milk as dairy companies are preparing to absorb a squeeze in margins from lower prices. "Dairy companies in Maharashtra have posted lower profit margins for June quarter due to increase in milk procurement prices. Milk prices, however, are unlikely to decline because of a cut in SMP prices," said Shirish Upadhyay, senior vice-president (strategic planning), Parag Milk Foods Ltd, the producer of Gowardhan brand milk and cheese.

An Edelweiss Securities report said that the average milk procurement price for Prabhat Dairy stood at Rs 27.1 for the April–June quarter of 2017, up by five per cent from the corresponding quarter last year and down by around five per cent from the previous sequential quarter.

However, dairy producers are having a hard time on the exports as the prices prevailing in the international markets are 20 per cent less than the domestic market.

Comment
Related opportunities
  • About Us: The American School is a unique research-based endeavour..
    Locations looking for expansion Delhi
    Establishment year 2016
    Franchising Launch Date 2018
    Investment size Rs. 2lac - 5lac
    Space required 1000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Sports & Gaming
    About Us: No Escape is an exciting live game experience (in..
    Locations looking for expansion Maharashtra
    Establishment year 2015
    Franchising Launch Date 2016
    Investment size Rs. 2lac - 5lac
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Mumbai City Maharashtra
  • “Be a part of ever growing spa industry with Spa..
    Locations looking for expansion Madhya Pradesh
    Establishment year 2015
    Franchising Launch Date 2015
    Investment size Rs. 20lac - 30lac
    Space required 1000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Ratlam Madhya Pradesh
  • Business
    MedZone – Asia’s No.1 Medical Shop Network About Us: MedZone, is India’s..
    Locations looking for expansion Chandigarh
    Establishment year 2000
    Franchising Launch Date 2015
    Investment size Rs. 50 K - 2lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater chandigarh Chandigarh
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities