Milk unions cry foul as GCMMF hikes prices

Member dairies to pay GCMMF 50 p more per ltr.

In a development which could spell trouble for milk unions across the state, the Gujarat Co-operative Milk Marketing Federation (GCMMF), the apex organization of the 13 milk unions of Gujarat has decided hike milk supply price for members by 50 paise per litre.

GCMMF supplies milk to member dairies, which have lower procurement. The hike, which is the second in the past two months, became effective from August 13.

"GCMMF has jacked up purchase prices for the dairies, which buy milk from federation," said Malabhai Rabari, chairman, Surendranagar District Cooperative Milk Producers' Union Ltd.

GCMMF’s move is likely to face stiff opposition from the milk unions, who purchase milk from the federation on a daily basis.

"We will move court if GCMMF does not withdraw the hike," said Madhu Shrivatsava, chairman, the Vadodara District Milk Marketing Federation.

The federation, which markets Amul brand of products, had hiked retail prices of milk in early July 2008-- second price hike in 2008. The development spells bad news for dairies like Sugam and Uttam, where the milk procurement is less.

“Generally, such decisions are taken in a board meeting, but this time, GCMMF has sent a circular to member unions regarding the increase in milk purchase prices, without a consulting all the members,” says an office bearer of a member union.

"We will be hit hard as the move means an additional burden of Rs 50,000-60,000. We are the largest purchaser of milk for GCMMF purchasing around 1.5 to 2 lakh litre per day. We are surprised that they have decided to hike prices without informing us in advance. Such decisions should be taken in board meeting, which is just a month away. We will raise the issue in the next board meeting," said Shrivatsava.