Dairy News
MILKFED RULES OUT IMMEDIATE INCREASE in VERKA MILK rates
Tuesday, 13/05/2014
http://epaper.dailypostindia.com/Details.aspx?id=102713&boxid=57877&uid=&dat=2014-05-13
Chandigarh : In what appears to be a sigh of relief for the common man, who is already burdened with high inflation rate, the Punjab government-owned milk federation Punjab State Cooperative Milk Producers Federation (Milkfed) has ruled out any immediate hike in the process of milk of its popular Verka brand in the state.
However, the Milkfed has raised the milk procurement rate by Rs 20 per kg fat from existing Rs 520 per kg fat to Rs 540 per kg fat with effect from May 1.
The development assumes significance as other leading brands like Amul and Mother Dairy had recently raised milk rates, leading to speculation that Verka would also follow suit.
“We have no immediate plans to increase the prices of Verka milk even as we have raised the milk procurement rate paid to dairy farmers across the board Rs 20 per kg fat with effect from May 1,” Milkfed managing director Alaknanda Dayal told Daily Post here, on Monday.
She said besides looking after the interests of the dairy farmers, the state-owned cooperative body also fully takes care of the interest of its consumers and the milk prices are increased only in the acute circumstances when there is an implication on cost of production.
“As of now, we have no such reason to raise the milk prices,” Dayal asserted.
Citing the raise in milk procurement prices for farmers to low milk availability in summers and to boost milk supply, the Milkfed MD clarified that even as the prices are raised for farmers, there is no immediate plan to increase the retail rate of Verka milk.
The Milkfed MD also said that the hike in retail milk prices would be considered when the dairy farmers will be given another raise in milk procurement rates next time. “When it will be given, that will depend on market scenario,” she clarified.
Meanwhile, citing 25 to 30 per cent hike in input cost, the dairy farmers in Punjab have been seeking hike in milk procurement prices from the Milkfed.
Reiterating the demand, Punjab Progressive Dairy Farmers’ Association (PDFA) president Daljeet Singh said, “We are demanding from Milkfed to further increase milk procurement rates as it has become increasingly difficult to supply milk at current rates in view of considerable increase in our input cost.”
According to official figures, progressive dairy farmers supply about 3 lakh litres of milk per day to Milkfed, which is almost 30 per cent of Milkfed’s total milk procurement.
Seeking milk procurement rate of Rs 600 per kg fat from Milkfed, the dairy farmers said Amul brand has now started giving milk procurement rate of Rs 590 per kg fat to its farmers.
“In Punjab, we are still getting very low prices as compared to rates being given by Amul,” claimed Singh.
Milkfed, which is the biggest player in the organised dairy market in Punjab, had raised milk prices by Rs 4 per litre in December last.
Milkfed is currently selling milk at Rs 44 per litre (full fat), Rs 40 (standard), Rs 36 (toned) and Rs 32 (double toned).
During hot weather conditions, milk production usually goes down due to heat stress in animals.
Milkfed, which sells milk and milk items in Punjab, Chandigarh and few places in Himachal Pradesh, is currently procuring milk in the range of 13 lakh litres per day from small and big dairy farmers.
Dairy farmers noted that input cost had gone up by 25 to 30 per cent, making it “unviable” for them to run dairy farms while many of farmers had shut down their businesses.
Singh reasoned, “Soybean rates have gone up by 30 per cent to Rs 3,100 per quintal while mustard cake prices went up by Rs 250 per quintal and prices of mustard cake has also shoot up to Rs 1,050 per quintal.”