Rollback Of Hike In Milk Price Ruled Out

INDIA - While consumers are not happy with the recent hike in milk price announced by Goa Dairy, its Chairman Madhav Sahakari said the hike was imminent and ruled out any possibility of roll back in the price at this stage unless government offers subsidy.
calendar icon 30 April 2007
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The Goa Milk Producers Cooperative Society has increased the milk price from April 28, effecting increase of Rs 1 to Rs 2 per litre.

Goa Dairy procures substantial quantity of milk from dairy farmers from Maharashtra and Karnataka . It has been forced to increase the price because suppliers from neighbouring states have been demanding more price, says Sahakari.

It’s total procurement is about 90000 liters of this local procurement is 45000 liters. They are affected because of drop in milk production during lean period.

Says Sahakari,, “Production of milk goes down during the months of April –September, and hence local produce is likely to drop to 30000 liters in the coming months. On the other hand supply from outside will also dwindle due to similar reason, adds Sahakari ruling out any roll back in the price now.

The registrar of the co-operative society has written to Goa Dairy asking to drop the increase. However, Sahakari says they are helpless because it is not financially feasible unless government offers some monitory help.

Meanwhile, the Goa State Co-operative Milk Producers’ Union (GSCMPU), has moved the High Court challenging the order of the Department of Animal Husbandry & Veterinary Services (AHVS) of March 1, wherein the government increased the minimum procurement price per litre of milk procured by milk producers to the co-operative societies.

The March 1 order fixed the minimum procurement price as Rs 12 per litre for milk producers to the co-operative societies with 3.5 % fat and 8.5 SNF.

Source: Herald Publications
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