Milk Prices Go Up Further

Our Bureau, Mumbai, http://www.fnbnews.com/

 

After Delhi and Gujarat, two of the Maharashtra's leading milk cooperatives Warana and Gokul have decided to charge more for milk.

According to revised prices in the state, per litre price for buffalo milk is Rs 32 compared to Rs 30 earlier and Rs 27 for cow/toned milk, one rupee more.

Since 2006, milk prices have went up from Rs 18 to 30. Few months back (August and October 2009), pan-India leading cooperatives like Mother Dairy had increased dairy prices by Rs 2 per litre. Mumbai receives 50 lakh litres of milk everyday.

Karnataka in row
Karnataka Milk Federation (KMF) is set to go in for price hike by Rs 2 or Rs 3 per litre. The milk major has sent in a proposal to this effect to the state government on this.

The hike is mandated as the producers are burdened with the rising production costs which make dairy farming unviable. The benefit of the price hike would be shared between the farmers and the KMF in the ration of 70:30. Out of the 14 milk unions in the state, profits of the Gulbarga and Belgaum declines sharply, stated Karnataka Minister for Cooperation, Laxman S Savadi.

The key objective of the price hike was the eroding profits for the Federation.

Current price of Nandini brand milk is Rs 17 and Rs 22 depending on the fat content.

The price of Nandini milk was last hiked by Rs 2 in November 2007. In fact the Federation’s efforts to increase the price were stopped last year. The government had however gone ahead to give a Rs 2 incentive to dairy farmers.

Another issue for the KMF was that its procurement levels had fallen due to water and fodder shortage. On June 22, 2009, the Federation clocked the highest milk procurement registering 40.02 lakh kilograms which was the second highest in the country after Amul. The average procurement is 36.71 lakh litres.

Present procurement is around 33.54 litre a day which is lower than the average rate. The state can manage the decline in procurement because it is already in excess of 5.46 lakh litres.

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