Buffer stocking of milk products required: Amul

In order to provide cushion to milk producers as well as consumers, the Gujarat Co-operative Milk Marketing Federation (GCMMF), popularly known as Amul, has suggested that a buffer stock mechanism for milk products is required in India on the lines of buffer stocking of agricultural commodities like wheat and rice.

Referring to the well-established buffer stock systems for milk products in the US and European countries, Parthi Bhatol, chairman, GCMMF, states in the federation's annual report for 2009-10 that across the world governments keep buffer stocks of milk powders butter and other dairy products with a view to supporting milk producers on one hand and checking undue price fluctuations on the other.

“In the case of India, too, similar systems exists for other agriculture commodities. A mechanism of buffer stocking is also required in the country to provide support to milk producers and consumers,” he suggests.

Milk is the largest agriculture commodity in the country and registered a production of 110 million tonnes during 2008-09. Revenues during the period stood at around Rs 2.2 lakh crore in value terms.

The federation also wants value added tax (VAT) on dairy products like baby milk food, butter, ghee, cheese and ice-cream to come down to 4 per cent from current 12.5 per cent as it would increase consumer demand, boost milk products consumption and improve their health by way of better nutrition.

The total milk procurement by GCMMF’s member unions during the year 2009-10 averaged 9.30 million kg per day, which shows a growth of 6.8 per cent over 8.7 million kg per day achieved during 2008-09. Sales registered a growth of 19.3 per cent to reach Rs 8,005.36 crore as against Rs 6,711.31 crore last year.