Mumbaiites, prepare to pay more for milk, prices likely to rise by ₹2 a litre
Mumbai city news: On Sunday, dairy development and animal husbandry minister Mahadev Jankar said farmers are likely to be paid Rs2 more a litremumbai Updated: Jul 18, 2017 10:16 IST
With the Maharashtra government set to pay farmers a higher price for milk, expect the cost of government and private brands to rise by about Rs2 a litre. The state will hold a meeting of stakeholders on Tuesday to decide upon the final price.
To reassure agitating farmers, the government had said it would pay them more for cow and buffalo milk, to ensure than farming remains a sustainable practice. On Sunday, dairy development and animal husbandry minister Mahadev Jankar said farmers are likely to be paid Rs2 more a litre.
Currently, the government pays farmers Rs24 a litre for cow milk, while buffalo milk fetches them Rs33 a litre at the government procurement centres.
Govt also accepts the demand of farmers to increase the milk prices .— CMO Maharashtra (@CMOMaharashtra) June 11, 2017
“The rise will be applicable to societies and unions collecting milk for government brands. But, with the government paying more for milk, even private brands will be forced to do the same, leading to a spike in prices. We have decided upon a 70:30 formula, under which the farmers get 70%, while the milk -collecting societies and unions get 30% of the cost. If this is implemented, the difference between the procurement rate and retail price will reduce and there will be no need to increase the retail price,” said an official from the dairy development department.
At the same time, the milk societies will have to agree with 70:30 formula of profit sharing on the lines of sugar industry .— CMO Maharashtra (@CMOMaharashtra) June 11, 2017
“Private brands always pay more than the government. For instance, Gokul pays farmers Rs28 a litre for cow milk. Owing to the stiff competition, private brands will start paying farmers more when the government does. They will have no option but to ask customers to pay more then,” said Vinayak Patil, president, Rajarambapu Patil Sahakari Dudh Sangh, Sangli.
Experts from the dairy development sector have demanded a government subsidy to keep retail prices in check. “The government should give us subsidies, just as the Karnataka and Haryana governments do. This will ensure that there is no hike in retail prices,” said Vaishali Nagawade, former chairman of Mahananada.