Gujarat-based co-operative dairies have raised the milk procurement prices, which have come into effect from Thursday. This has come as a major respite to milk producers mainly consisting of farmers, who are facing problems due to skyrocketing cattle feed cost.
Co-operative dairies such as Amul, Dudhsagar, Banas and Sumul have increased the prices paid to milk producers for supplying milk to the respective dairies. The new prices have come into effect from 1st April. "The dairies have hiked the milk procurement prices in the range of Rs 5 to Rs 10 per kg fat," confirmed a senior official of Gujarat Co-operative Milk Marketing Federation (GCMMF).
"Amul dairy has increased the procurement price to Rs 340 per kg fat from Rs 335 per kg fat," said a top official of Kheda District Co-operative Milk Producers Union Limited (KDCMPUL), popularly known as Amul Dairy.
Dudhsagar Dairy managed by Mehsana District Co-operative Milk Producers Union, too, has hiked the procurement prices to Rs 350 per kg fat from earlier level of Rs 340 per kg fat. Banaskantha District Co-operative Milk Producers Union or Banas Dairy and Surat Milk Union Ltd or Sumul Dairy have increased their procurement prices to Rs 350 per kg fat and Rs 355 per kg fat from Rs 340 per kg fat and Rs 350 per kg fat respectively. It may be mentioned here that almost all the dairies had raised the milk procurement prices in February as well.
The recent surge in procurement prices has brought cheer to milk producers, who were pitching for higher prices for milk supplied by them to these dairies in the wake of soaring cost of cattlefeed.
As per the industry sources, cattle feed prices shot up by more than 30 per cent in last few quarters, while prices paid to milk producers have increased only 15 per cent.
The issue of higher cattle feed was raised during a meeting of co-operative dairy representatives and Prime Minister Manmohan Singh yesterday. The co-operative dairies have demanded imposition of 25 per cent of excise duty on oil meals, de-oiled cake and cattle-feed.
GCMMF also sees firm cattle feed prices as one of factors responsible for lower growth in milk procurement in recently concluded financial year. The federation estimates 5 per cent growth in average milk procurement by member unions at around 90 lakh kg per day in 2009-10 as against a robust growth of 14.87 per cent in 2008-09, which saw average milk procurement of 87.19 lakh kg a day.
