Mahadev Jankar cited the example of the sugar sector that has implemented the revenue-sharing formula, as per the recommendations of the C Ranjarajan Committee. (File photo)
Mahadev Jankar, the state Minister for Animal Husbandry, Dairy Development and Fisheries said the state government is likely to introduce legislation for revenue sharing in the dairy sector during the Winter Session at the state Assembly. Jankar, while speaking to The Indian Express, also said that the work for finalising a single brand of milk in the state is in the final stages.
The need for a revenue- sharing formula between dairies and farmers has been a long-standing demand of the sector. Often, farmers bear losses when dairies decide to slash the procurement prices of farmers in view of lower commodity prices.
This year, the farmers have come on roads twice to protest against the low procurement prices. The state government had announced a Rs 5 per litre subsidy for milk farmers.
In view of the volatility in the commodities market, the state government has been toying with the idea of a revenue sharing formula for
the sector.
Jankar cited the example of the sugar sector that has implemented the revenue-sharing formula, as per the recommendations of the C Ranjarajan Committee.
Thus, in years when the sugar prices are firm, the grower is expected to get 70 per cent of the revenue generated from the sale while in years of low sugar prices, farmers are expected to get the Fair and Remunerative Price (FRP).
“Such legislation will help the dairy farmers get better prices,” he said. The legislation, the minister said, is going to be introduced in the
Winter Session.
Another important policy decision that the government is almost on the verge of finalising is a single brand of milk. Unlike Gujarat or Karnataka, Maharashtra does not have a single brand for marketing of milk and milk products.
It creates a major problem for the state in terms of providing subsidies to farmers or control the sector.
Jankar said the central government has given the necessary finances for the project that is expected to take off soon.