Dairies procure milk at Rs 25/lit from farmers
   Date :29-May-2020

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By Niraj Chinchkhede :
 
Even as milk prices for consumers have not witnessed any change during the lockdown, its price for the dairy farmers has slipped dramatically over the period. The farmers who used to sell milk at a rate of Rs 32 per liter during early March, are now selling it at Rs 25 per liter to various co-operative societies and private dairies. However for the consumers continue to pay the same price of about Rs 44 per liter. One of the farmers, on a condition of anonymity, told The Hitavada that the current milk procurement price fixed by the co-operative societies is very low. “As there are very less number of buyers in the market, we have no other option but to sell milk at such a low price,” he said highlighting that because of the current price levels many dairy farmers are facing hardship.
 
Apart form this, he also said that some of the private dairies in the region are offering even less price to the farmers. It is important to note that milk needs to be stored in specially designed containers in summer. The farmers put ice in the containers to maintain its temperature which increases the self life of the commodity. But because of the lockdown, non availability of ice has been restricting the farmers from minimising the losses. As per the sources, ever since the Government imposed various restrictions on the citizens in an attempt to control spread of corona virus, the demand for milk dropped in the markets manifold.
 
But the supply side remained unaffected. Because of this, the milk procurement system has gone haywire. “Due to closure of hotels, restaurants, tea and coffee shops, the demand for milk has come down by almost 30-40 per cent. And the farmers who used to cater to these private bulk buyers are now selling milk to dairies,” said one of the highly placed sources who preferred not to be quoted. He said that most of co-operative societies in the State have brought down their milk procurement rate from Rs 32 per liter to Rs 25 per liter.
 
As per the directions of the Government, the co-operative societies have increased milk procurement despite of the fact that the sale has gone down. “Though the sale of the milk has come down, the co-operative societies are buying milk from the farmers only to support them,” he said adding that the societies are incurring heavy losses because of the market conditions.