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Resource centre on India's rural distress
 
 

As the milk glut intensifies, farmer protests are likely to spill over -Sayantan Bera

-Livemint.com

Together with large stocks of sugar and higher planting of sugar cane, the surplus situation in Indian agriculture is set to worsen, fuelling another round of farmer protests as states like Madhya Pradesh, Chattisgarh and Rajasthan goes to polls

Pune/ New Delhi:
Karan Ramdas Atole’s dairy farm is a neat brown square of cleared ground surrounded by lush green sugarcane fields. A mechanical engineer by training, 25-year-old Atole took a loan of ?2 million to set up the farm in his native village in Pune district of Maharashtra. That was in June last year when cow milk sold for ?25 a litre.

Driven by excess supplies and stalled exports of milk powder, prices collapsed to a low of ?17 per litre—less than what it costs to buy a bottle of drinking water.

Atole defaulted on his loan repayment in May.

So, on 16 July when a farmer union from Maharashtra called a strike to stop milk supplies to major cities Atole did his part. As farmers from the prosperous sugarcane growing areas of western Maharashtra stopped milk vans and poured milk on highways—some even took a bath with milk to draw the government’s attention— Atole distributed milk for free among the poor. The four-day strike by the Swabhimani Shetkari Sanghatana led by Member of Parliament Raju Shetti forced the government to raise the procurement price to ?25 per litre on 19 July. This is still less than the ?32-35 it costs a farmer to produce a litre of cow milk.

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