Mumbai: In a bid to resolve the ongoing agitation by milk-producing farmers, the state government has announced a subsidy at the rate of Rs 3 per litre to milk powder producing private and cooperative dairies till June 8, 2018. But the subsidy comes with a rider that dairies will have to produce 20 per cent more milk powder than that produced in March 2018. The subsidy will cost Rs32 crore to the state exchequer.
While the farmers’ body has welcomed the decision, it said it will continue the protest till farmers start getting the increased amount per litre of milk. The ongoing agitation over milk prices has farmers distributing milk freely to various NGOs and schools, but not giving it to dairies, resulting in a milk collection crisis in major districts of the state. The crisis started with a dip in milk powder prices globally, manifesting itself in daily losses for milk powder producing dairies in Maharashtra. Stocks of nearly 26 thousand tonnes of milk powder are currently lying with these dairies, which are hence failing to buy milk from farmers at declared rates of Rs27 per litre. The farmers are protesting the lower rates.
Meanwhile, Dr Ajit Nawale of the All India Kisan Sabha welcomed the decision.
