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Dip in milk procurement, prices likely to increase in Maharashtra

The ongoing drought has effected an almost 20 per cent dip in milk procurement as farmers find it difficult to provide fodder and water for their animals.

Milk price, Milk price today, Maharashtra drought, Maharashtra milk prices, Maharashtra milk rate In Maharashtra, most dairies have reported a 20 per cent dip in procurement but have not taken any decision about hiking retail prices.

Retail milk prices in the state are all set to rise as dairies complain of dip in milk procurement. The ongoing drought has effected an almost 20 per cent dip in milk procurement as farmers find it difficult to provide fodder and water for their animals.

On Monday, the Gujarat Cooperative Milk Marketing Federation — the proprietor of brand Amul — had effected a Rs 2 per litre price rise in its milk pouches. Thus, a litre of milk by the brand will now cost Rs 44, which was earlier priced at Rs 42. This would be the first time in two years the cooperative giant has increased the retail price of milk. Increased cost of production in view of dip in procurement, the Federation said, had forced them to increase the price.

In Maharashtra, most dairies have reported a 20 per cent dip in procurement but have not taken any decision about hiking retail prices. Even dairies in the otherwise flush districts of western Maharashtra have reported a dip in production. The lower production, however, has not resulted in any windfall gains for farmers as dairies have decided to reduce the procurement price of milk. As against the government declared price of Rs 25 per litre for milk with 3.5 per cent fat and 8.5 per cent SNF (solid not fat), dairies have said they will pay Rs 23 as the state government’s subsidy of Rs 3 per litre has stopped. On an average, Maharashtra reports 1.25 crore litres of milk procured by dairies on a daily basis.

The price slash comes at a time when Skimmed Milk Powder (SMP) prices have firmed up in the domestic markets. Low SMP price was the cause of dairies slashing the procurement price in 2018. Vinayak Patil, president of the Maharashtra Milk Farmers and Processors Welfare Association, confirmed that talks of price hike are in the offing.

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“The association will be meeting in Pune on Tuesday to take a final call,” he said.

First published on: 21-05-2019 at 08:35:17 am
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