Dairy News
Pune: Milk prices set to go up by Rs 2/ltr from July 1
Wednesday, 29/06/2016
http://indianexpress.com/article/cities/pune/pune-milk-price-rise-maharashtra-dairy-2882186/
According to sources in the dairy development department, authorities had sent a proposal earlier this month to the state government to increase procurement price of milk by Rs 2 per litre.
After vegetables, the price of milk is set to rise from July 1 with the state cabinet approving on Tuesday a month-old proposal by the state’s Dairy Development Department to hike the procurement price by Rs 2 per litre.
Consecutive droughts and shortage of fodder have disturbed the milk procurement cycle in various parts of the state. In particular, farmers have been forced to use sugarcane leaves as fodder, which has led to reduction in milk production in the state. Rough estimates suggest that the daily milk procurement in the state has come down to 1 crore litres per day from 1.20 crore litres per day earlier.
According to sources in the dairy development department, authorities had sent a proposal earlier this month to the state government to increase procurement price of milk by Rs 2 per litre. Procurement price is the selling price of milk by farmers to primary milk societies and unions, which in turn supply it to bigger dairies. After the milk is treated at chilling plants, it is supplied to retailers across the state.
At present, the procurement price from farmers is Rs 20 per litre and depends on fat contents of the milk. Milk with higher fat content fetches more price. The increase in procurement price is bound to have a domino effect with the end consumer set to witness a price rise too. The cabinet decided to hike the procurement price of cow milk to Rs 22 per litre and buffalo milk to Rs 31 per litre.
Dr Vivek Kshirsagar, managing director of Pune-based Katraj Cooperative Dairy, said that the dairy’s board would be meeting on Wednesday to take a final decision on the price rise. “Over the last few months, the dairy industry has been going through a tough time, with the drought taking a toll on milk production. A price rise is on the anvil,” he said.
Many others, like Gokul Cooperative Dairy, have already increased prices. Indapur-based Sonai Dairy is expected to take a decision on price rise soon. DS Mane, chairman and managing director of Sonai Dairy, said the board would take a final decision after the government’s price hike. “We have already increased the procurement price as milk is less,” he said.
Kaira District Co-operative Milk Producers’ Union Limited at Anand in Gujarat, which is better known as Amul, however, seemed unaffected by the price rise as the procurement price for it is already Rs 23 per litre. Prabhakar Choure, additional general manager at Amul, said that the firm has the highest procurement price among dairies in the state.