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Milk Procurement Prices in Maharashtra to Be Revised From April 16


Milk Procurement Prices in Maharashtra to Be Revised From April 16
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A few milk dairies in Maharashtra are contemplating another correction for the procurement cost of milk. Some private dairies are reportedly going to pay only ₹25 per litre as compared to the current rate of ₹27 per litre. This is proving to be a frustrating ordeal for the farmers that supply milk as the dairies have now initiated two price corrections in under a week. 

Dairies announced on April 11 that the procurement price of milk will come down to ₹27 per litre from ₹30. The new correction takes that even lower, making this a ₹5 decrease in costs paid to the farmers in less than a week. 

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It is believed that this is an impact of the restrictions imposed in Maharashtra. With many restaurants, shops, offices etc not allowed to operate, consumption of milk has fallen drastically, and dairies are now looking to clear out excess milk. 

“The production cost of the present stock of skimmed milk powder (SMP) is ₹270-280 per kg. Domestic prices of SMP has since then dipped to ₹200-210 per kg so it would not be possible to sell the same at a profit. We have no other option but to announce a further ₹2 per litre price correction from April 16,” a private dairy owner from Pune was quoted as saying by The Indian Express.

The Chairman and Managing Director of Sonai Dairy (Indrapur) said that a price correction cannot be ruled out but added that it won’t go below ₹25 per litre. 

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“We have decided not to go below ₹25 per litre as the procurement price. Any further correction would be detrimental to farmers in particular and the trade in general,” he said.

“At present, the international prices of SMP are quite good. Exports of SMP and white butter can help the dairies maintain their bottom line,” he added.  

Similarly, cooperative milk dairies were sceptical about bringing the cost below ₹27 per litre. Kolhapur Cooperative Milk Producers Union (Gokul) and Pune District Cooperative Union (Katraj) have said that they are paying ₹27 per litre to the farmers and will continue to do so. The Managing Director for the Gujarat Cooperative Milk Marketing Federation, R.S. Sodhi echoed the same sentiment.

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