Gujaratstartups, VADODARA: If you are already bearing the brunt of increasing commodity prices, here is more bad news for you as prices of milk are also set to soar in near future.

While Union agriculture minister Sharad Pawar's statement in Delhi that a price hike in milk was imminent due to scarcity of milk in north India, both dairy giants Mother Dairy, Delhi managed by National Dairy Development Board (NDDB) and Gujarat Co-operative Milk Marketing Federation (GCMMF) (that market brand Amul) are expected to increase price of milk anytime.

Even as Pawar himself said that the price of milk will increase, NDDB stayed away from making any official announcement while officials in GCMMF did not rule out a price hike. Sources suggest that both are waiting for the other to raise the milk prices.

While Pawar's statement has created a political turmoil, Amul was already contemplating a price hike since December and was expected to take a final call regarding price revision in February when winter, which is usually the lush season of milk, ends.

"Whatever Pawar has said is true," GCMMF's managing director BM Vyas said, hinting that a price hike will be introduced sooner. "The cost of milk production has increased significantly. Spiralling prices in agriculture commodities have not only affected urban consumers but has also affected farmers. We will have to compensate them (farmers) if we want to maintain milk supply."

For consumers in Gujarat, where Amul is the biggest player, a price hike in milk now would come as first in 2010 and 10th since 2006. In 2009, the apex marketing body of all the 13 district dairy unions of Gujarat had already raised prices of milk thrice in May, July and September. In other terms, consumers in Gujarat will be paying Rs 8 more per litre for the same milk that he was purchasing in less than four years time.

After the last hike in milk prices introduced by Amul from September 1 in all six variants of Amul milk by Re 1 per litre, consumers in Gujarat had to shell out Rs 26 per litre for Amul Gold, Rs 24 per litre for Amul Shakti and Amul Tea Special, Rs 23 per litre for Amul Cow Milk, Rs 22 per litre for Amul Taaza and Rs 20 per litre for Amul Slim & Trim. If the price hike is introduced in all the variants, consumers will be spending anywhere between Rs 21 to Rs 27 per litre from their pockets.

It is pertinent to note here that last year Amul had increased milk prices ahead of its arch rival Mother Dairy in Delhi market. While in early December, the Rs 6,711 crore Amul had raised milk prices by Re 1 in Kolkatta market, in mid-December it had revised the butter prices upwards by Rs 20 per kilogram across the country.

Source: Times of India