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LATEST NEWS UPDATES | Flush season extends, dairy farmers worry about further dip in procurement prices -Parthasarathi Biswas

Flush season extends, dairy farmers worry about further dip in procurement prices -Parthasarathi Biswas

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published Published on Mar 9, 2018   modified Modified on Mar 9, 2018
-The Indian Express

Around 10 per cent more milk being produced compared to last year

Pune:
This year has so far failed to bring cheer to the dairy industry in Maharashtra. The extended flush season has added to the woes of the industry already reeling under low commodity prices. With around 10 per cent more milk being produced as compared to last year, dairies are now worried about further reduction in the farmer’s price. For the last few months, procurement prices of milk has become a bone of contention between farmers and dairy firms in Maharashtra. Dip in international prices of skimmed milk powder (SMP) and white butter has seriously corroded the profitability of the firms who have started slashing procurement prices of milk at the farmers’ end. None of the dairies in the state are currently paying the government decided rate of Rs 27 per litre for 3.5 per cent fat and 8.5 SNF (solid not fat) milk. Procurement prices range from Rs 19-21 per litre in Pune, Ahmednagar to Rs 25 per litre in Kolhapur and Sangli.

To add to their woes, dairy farmers are now reporting almost a 10 per cent increase in milk production despite the start of summer. At the onset of the summer season, milk production normally goes down by about 15-20 per cent, as animals stop lactating naturally. This shortage in supply normally comes due to higher demand for dairy-based frozen products. Dairies, normally, use conserved store of SMP to meet this demand. Farmers, too, normally get a premium for milk in view of the increased demand. On an average, Maharashtra reports more than 1 crore litre of milk procurement in a day.

However, this year, the summer months have not seen any reduction in milk production. Vishwas Patil, chairman of the Kolhapur district milk union(owner of the brand Gokul), said the 10 per cent excess milk has upset many calculations. The union, which reports procurement of 10.64 lakh litre per day, is by far one of the better pay masters as they are still paying Rs 25 per litre to dairy farmers. Patil, however, said going forward things do not look very optimistic given the low prices of SMP and white butter.

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The Indian Express, 8 March, 2018, http://indianexpress.com/article/india/flush-season-extends-dairy-farmers-worry-about-further-dip-in-procurement-prices-maharashtra-5090249/


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