Amul, Mother Dairy Hike Milk Prices, Dairy-Linked Stocks Surge
Shares of Parag Milk Foods, Dodla Dairy and Hatsun Agro gained after Amul and Mother Dairy raised milk prices by at least Rs 2.
Shares of milk producers such as Parag Milk Foods Ltd. and Dodla Dairy Ltd. surged on Tuesday after Amul and Mother Dairy hiked milk prices.
The Gujarat Cooperative Milk Marketing Federation Ltd., the marketer of Amul products, raised milk prices by Rs 2 per litre in all markets from Aug. 17, according to PTI. Mother Daily followed suit with effect from Wednesday.
The hike will impact rates of Amul's Gold, Shakti, and Taaza milk brands.
Shares of Parag Milk Foods, Dodla Dairy, and Hatsun Agro Product Ltd., all sellers of milk or milk-based products, gained after the hike.
Parag gained 6.2%, while Dodla gained over 7%. Hatsun's stock jumped over 7.6%, while the benchmark Sensex was up 0.54%.