Generally, private dairies decide their milk procurement rates based on those of the cooperative dairies.
Mumbai: The state’s dairy industry has sought government help to survive a potential crisis from an increase in milk procurement price and a crash in milk product prices. The industry suffered a loss of around Rs 200 crore in the last two months alone.
Generally, private dairies decide their milk procurement rates based on those of the cooperative dairies. The government has set a rate of Rs 27 per litre for buying from the farmers. But no dairy, be it in the cooperative sector or the private sector, is giving this rate to the farmers, said milk processors’ association chief Gopalrao Mhaske. “The Pune district milk cooperative society, which is state’s largest, is purchasing milk at Rs 21.50. Private dairies are getting milk at Rs 18 to Rs 20 per litre,” he said.
According to sources, several organisations of dairy owners have written to the state government for intervention. “It is not possible for us to purchase milk with Rs 27 because the demand for milk powder is down in the domestic and international markets. The situation is the same with butter. Then what would we do with the huge purchase of milk?” Mr Mhaske asked.
According to sources, almost 30,000 tonnes milk powder is lying in the state’s godowns. All over the country, the stocks amount to up to 3 lakh tonnes. So, the investment in milk powder is fetching no return. This is affecting the milk procurement. In the milk powder business, at current rates of milk purchase, the producers suffer losses of up to Rs11 on 100 litres of milk. In the butter business, the losses are around Rs 7 on 100 litres of milk.
“The losses in only the milk powder all over India have gone up to the Rs1,800 crore. if you look at Maharashtra, the industry is facing at least Rs 100-crore loss for the last two months," Mr Mhaske said.