What impact can the Amul milk price hike by ₹2 a litre have on the economy
Amul milk price hiked by ₹2 a litre
- Inflation: The price hike of Amul milk by ₹2 per litre can contribute to inflation as it may lead to an increase in the overall cost of dairy products, impacting consumers' purchasing power.
- Consumer Spending: Higher milk prices could reduce disposable income for consumers, potentially causing them to cut back on other expenses, impacting various sectors of the economy.
- Demand for alternatives: Consumers may seek out cheaper alternatives to Amul milk, impacting the sales of the company and potentially boosting competitors offering lower-priced products.
- Farmer income: Higher milk prices could benefit dairy farmers supplying to Amul, leading to increased income for them, which could have a positive impact on the rural economy.
Answered
11 months ago