No dairy in the state is paying farmers the government declared rate of Rs 27 per litre (for 3.5 per cent fat and 8.5 per cent solid not fat). Instead, farmers are being paid between Rs 17 and Rs 25 per litre. (Express/Representational Image)
DAIRIES IN Maharashtra have demanded that activities of ‘out of state’ players like Nandini (brand of Karnataka Milk Producers Federation Limited) and Amul be curtailed in the state. At a meeting held in Pune on Thursday, both private and cooperative dairies blamed Nandini and Amul for damaging their market in the state. The dairies also decided to look into the means of reducing the selling price of liquid milk, which they hope will help increase the procurement price for farmers.
The meeting — attended by milk producers and processors’ welfare association, an umbrella body of diaries in the state — assumes importance as milk prices have become a matter of concern with dairies slashing procurement price. No dairy in the state is paying farmers the government declared rate of Rs 27 per litre (for 3.5 per cent fat and 8.5 per cent solid not fat). Instead, farmers are being paid between Rs 17 and Rs 25 per litre.
A few days ago, the state government had announced a subsidy of Rs 3 per litre for production of skimmed milk powder (SMP). Also, notices have been issued to all the 23 cooperative unions, asking why their board of directors should not be dismissed, as they have failed to pay the government rate.
The meeting discussed the Rs 5-per litre subsidy given by the Karnataka government to its dairy farmers, with state dairies seeking the adoption of a similar model. While Nandini, the dairies said, can procure milk at lower prices and thus, does not incur losses in production of SMP, Amul can also afford to sell SMP without significant losses. As against the production cost of Rs 200 per kg, SMP is at present selling at Rs 116 per kg at the open market.
“While we are unable to sell our stock of SMP, Nandini is able to do so thanks to the government’s Rs 5-per litre subsidy,” said a dairy official.
Vinyakrao Patil, president of the association, said that Amul and Nandini together sell around 30 lakh litres of milk per day in Maharashtra. Amul alone sells around 21 lakh litres of milk per day while it procures around 15 lakh litres every day. Similarly, Nandini sells around 1 lakh litres of pouch milk and if its sale of byproducts is considered, the figure touches around 3 lakh litres per day.
Addressing mediapersons after the meeting, Patil said the subsidy announced by state government lacks clarity. “…Instead of subsidy for production of SMP, a direct subsidy should be provided to the farmer… We have been called for a meeting with the dairy development commissioner on Friday,” he added. The association, meanwhile, has set up a special committee to study if it is possible to reduce the selling price of milk.
On May 12, the dairies would meet former Union agriculture minister Sharad Pawar to discuss the various issues facing the dairy sector. “We would request Pawar saheb to led a delegation to the chief minister to look for a holistic solution to the problem. In case this does not work, we will approach the Supreme Court,” said Patil.