Reduction in procurement likely to hike milk prices

PUNE: As per dairy producers in the State, it was likely that the retail price of cow milk might increase by Rs 1-2. Drought-like conditions in Marathwada and Vidarbha reduced the procurement of cow milk in the State and the increasing price of Skimmed Milk Powder (SMP) and white butter hit the pouch milk producers hard, increasing the purchase price of milk from Rs 25 to Rs 30.

“The procurement of cow milk in the State has reduced due to the drought-like situation in Marathwada and Vidarbha. However, the demand for milk by powder manufacturers has increased as the international rate of SMP has increased to around Rs 265-Rs 275 per kg, while the butter price has increased to Rs 310 per kg, further accelerating the milk price badly hitting the pouch milk producers,” said Secretary of Maharashtra Milk Producers and Processors Association Prakash Kutwal.

“The purchase price of milk has increased from Rs 25 to Rs 30 per litre and as a producer of pouch milk, we are facing a loss of Rs 4 to Rs 5 per litre of cow milk and in future, we might increase our selling price of cow milk for dealers,” added Kutwal who owns Urja Dairy.

Kutwal also mentioned that deficiency of milk procurement in the northern and southern parts of India also increased the demand further, accelerating the price. He said, “Since milk supply was deficient in other parts of the country, around 15 to 16 lakh litres of condensed milk was supplied to Mother Dairy while around 10 lakh litres of milk was supplied to southern states like Andhra Pradesh and Karnataka. Therefore, it also increased the purchase price of milk.”

“There was an all-India shortage of milk and, at present, due to a drought-like situation in Marathwada and Vidarbha, there was a shortage of around 25 lakh litres of cow milk in the State. However, the demand has increased due to a rise in the price of powder and butter and our purchase price has also increased by Rs 5. This might impact the retail price of cow milk in the coming days and the retail price will likely increase by Rs 1-2,” said Sangli-based Chitale Dairy partner, Shripad Chitale.

“Our purchase price of milk has increased from Rs 25 to Rs 28 and seeing the current condition, it might increase to Rs 35. At present, the retail price of cow milk is Rs 44 per litre and in coming days, the retail price might increase by Re 1 or Rs 2,” said Managing Director of Katraj Dairy Vivek Kshirsagar.

“However, increasing the price is not easy as competition in the market has increased due to the entry of Nandini in the State, while big players like Amul still exist,” added Kshirsagar.

He further said, “Due to the drought-like situation, the procurement of cow milk in the State has reduced from 140 lakh litres to 120 lakh litres. The recent flood in Kolhapur and Sangli also impacted the procurement of milk pushing the dairy industry in crises.”

EFFECT ON GANESH FESTIVAL
This year, for Ganesh festival, there might be a shortage of pedha and other sweets due to floods in Kolhapur and Sangli. Shripad Chitale said, “Usually, there is a shortage of 30 per cent in the procurement of buffalo milk from April to September. However, due to the recent floods in Kolhapur and Sangli, this deficit has increased by 10 per cent more, eventually resulting in the shortage of production of sweets.”