Milk procurement price hiked by Rs 35 by Rajkot Dairy in a month

Rajkot District Co-operative Milk Producers Union Limited, also known as Rajkot Dairy, has increased milk procurement price by Rs 10 to Rs 570 per kg fat. The new rate will be applicable from May 1.

The dairy has increased procurement price by Rs 35 per kg fat over the last two weeks. Prior to the current hike, it had raised procurement price by Rs 25 on April 15.

The rise in procurement price for milk producers comes in the backdrop of declining milk production in summer and rise in cost fodder and other associated cost related to animal feed.

"Declining production and increased cost of animal feed, fodder and other associated costs meant that milk producers deserve hike for milk produce and for sustaining their livelihood," said A C Sinha, managing director, Rajkot Dairy.

Milk output decreases in summer while at the same time, fodder prices increase. Farmers face fodder shortage for animals and have to pay high price for animal feed. To provide financial support to milk farmers, the dairy has revised procurement rate again. Rajkot Dairy is a member of Gujarat Cooperative Milk Marketing Federation (GCMMF).

Sinha said, "Rajkot Dairy is concerned about the difficulties milk producers face and we will surely provide support from time to time. If required, procurement price would be raised further during summer and it would be higher than last year."

The dairy is already paying higher rates to milk farmers as compared to last April. It had paid Rs 550 per kg fat in April 2014 for milk procurement. According to data available with Rajkot Dairy, per day milk supply has gone down from 650,000 litres to 400,000 litres in April and it will reduce even more in the coming days.

As per a dairy official, during summers, milk supply from producers reduces by 30 per cent. By May end, milk supply could be below 300,000 litres a day, the official said.

The dairy procures milk from 874 functional cooperative societies (DCS), including 438 women DCS spread across 14 talukas of four districts - Junagadh, Amreli, Porbandar and Jamnagar. About 55,000 milk producers are presently associated with the dairy, of which 26,000 are women.