Budget 2011: Ice cream to become dearer

MUMBAI: Ice cream makers are not raising prices immediately after a Budget proposal which may bring the category under the excise duty net with a concessional levy of 1%.

However, leading player Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets the Amul brand of milk products, said ice cream prices would go up in a month or so, after all costs are taken into account.

“There are other costs which are also putting pressure on margins. We will look at all these costs along with the excise duty levy before arriving at a revised price for ice creams,” said R S Sodhi, MD, GCMMF. The ice cream market is growing at 12-15%.