Rajkot Dairy hikes milk procurement price by Rs 10/kg fat

Rajkot District Co-operative Milk Producers Union Limited, also known as Rajkot Dairy, has increased milk procurement price by Rs 10 to Rs 535 per kg fat. The new rate will be applicable with immediate effect. However, rise in procurement price will not affect the retail price of milk.

"As our turnover and profit have increased, we have decided to pass it on to milk producers. That is why, we have increased procurement price by Rs 10 per kg fat," said A C Sinha, managing director of Rajkot Dairy.

Stating that during summers farmers face fodder shortage for animals and high price for fodder, he said that rise in milk procurement price will give them necessary financial support.

The dairy reviews procurement price every three months, but in the past three months it has raised the milk procurement price three times. In December 2014, procurement price was Rs 505 per kg fat and now it is Rs 535 per kg fat.

Sinha said, "Our milk procurement has gained by 6 per cent in 2013-14. Rajkot Dairy's per day milk procurement is 387,000 liters."

According to dairy official, during summers, milk supply from producers will reduce by 30 per cent.

Regarding future plans, Sinha said, "We are planning to add 33 new bulk milk cooling (BMC) units with support of National Dairy Development Board (NDDB)." Presently, Rajkot Dairy has 33 BMC units.

Rajkot Dairy is also planning to start 183 new dairy cooperative societies (DCS). The dairy procures milk mainly from 14 talukas with 874 functional DCS, including 438 women DCS and also from four districts - Junagadh, Amreli, Porbandar and Jamnagar. Presently, about 55,000 milk producers are associated with the dairy, of which 26,000 are women.

Turnover of the dairy rose to Rs 575 crore in 2013-14 from Rs 511 crore in 2012-13 and the dairy expects its turnover to touch Rs 650 crore in 2014-15.

Rajkot Dairy procures milk from small-scale producers from 14 talukas in the distirct before sending it to the nearest chilling centres. The dairy has five chilling units at Wankaner, Jamkandorna, Lajai, Vichhia and Majevadi.