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LATEST NEWS UPDATES | High cost of cattle feed: Milk cooperatives face strain in supply chain -AM Jigeesh

High cost of cattle feed: Milk cooperatives face strain in supply chain -AM Jigeesh

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published Published on Oct 7, 2022   modified Modified on Oct 11, 2022

-The Hindu

No plan to increase price of milk as of now, say federations

As the festival season has started, milk cooperative federations are witnessing a strain in the supply chain as the production has witnessed a marginal decrease primarily due to the increase in fodder cost. The organised sector is witnessing a decrease in procurement and the federations expect the situation will be normal after Deepavali. Farmers, however, demanded an increase for the procurement price of milk and direct subsidy to the fodder. The federations, however, have no plans to increase the consumer price for the milk as of now.

Managing Director of Amul R.S. Sodhi told The Hindu that the cost of milk production was 15to 20% higher than the previous year because of the increase in fodder cost. He said the production may have come down in the last two months also due to Lumpy Skin Disease, but the disease was under control and things were normal now. “Milk production saw a marginal decrease as farmers have cut down on the cattle feed due to increase in the price. Compared to 2019, the organised sector got about 15-20% more milk during the pandemic as unorganised sector could not function regularly. But in 2022, the demand for milk is high but the production has not increased to match the demand. There is a tightness in market. But we do not see any reason to increase the price at the moment,” he said adding that the Amul had recently increased the price of milk by 2 in August.

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The Hindu, 7 October, 2022, https://www.thehindu.com/news/national/high-cost-of-cattle-feed-milk-cooperatives-face-strain-in-supply-chain/article65976887.ece


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