The apex body of dairy cooperatives in the state — Gujarat Co-operative Milk Marketing Federation (GCMMF) has also attributed the rise in prices to increased operational costs and rising cost of cattle feed inputs.

GCMMF general manager (marketing) R S Sodhi said, "The rate at which we bought milk from farmers has been increased by 30-35 per cent, but consumer prices have only seen a 10 per cent in the last year." Justifying the price rise further, Sodhi said, "We had increased milk prices in February 2007, August 2007 and then again in February 2008 by Re 1 each. But this increase is comparatively less when seen in the context of operational costs in the dairy sector.

The Managing Director of the Baroda Dairy, Ravindra Mathur said, "Consumer price hike is not directly related to the rate at which milk is bought from the producers. It is dependant on a number of other factors such as fuel costs, cattle feed and so on."

Responding to a query on the increase in cattle feed prices, Mathur said, "Prices of pulses, cereals and de-oiled cakes have also increased considerably. These price-hikes also affect other operations."