MUMBAI:Though India’s dairy sector is going through a crisis with the crash in world costs of skimmed milk powder, the protests are loudest in Maharashtra— which ranks number 7 in milk production in India.
The reason: According to knowledge from the National Dairy Development Board (NDDB), farmers in Maharashtra gained a few of the lowest rates in the cooperative sector compared to different states (see graphic).
Rates offered by means of the personal sector, which controls 60% of the market in Maharashtra, are even decrease. Maharashtra’s non-public dairies are offering around Rs 16-19 in keeping with litre of cow milk to farmers.
Co-operatives offer reasonably upper procurement rates of Rs 18.five to Rs 23 in keeping with litre. Compare this to NDDB knowledge from different states for the cooperative sector.
Uttar Pradesh, the most important manufacturer in the country, had a median procurement price of Rs 25.6 in keeping with litre in June. In Rajasthan, it's Rs 23.6; Madhya Pradesh offered Rs 25, Gujarat’s price was once the best possible at Rs 29.five and Punjab offered Rs 25. Karnataka offered Rs 27.50 which incorporates a subsidy of Rs five from the state in keeping with litre.
“Maharashtra has decrease procurement rates compared to several different states because the cooperative sector in the state is not sturdy. Cooperative unions tend to supply upper costs than the personal sector,” says R S Sodhi, managing director of Amul.
The state’s cooperative sector accounts for barely 39% of the dairy trade. Officials say until international costs crashed in November 2017, dairies in the state offered up to Rs 27 in keeping with litre; they are saying the present value dip is brief. “We will probably be keeping a meeting with dairies on Thursday to invite them to boost procurement value. Like Gujarat, now we have offered a subsidy for export of skimmed milk powder to help reduce stocks,” said state dairy building commissioner Rajeev Jadhav. Several states offer subsidies to farmers or has schemes to buy milk, which helps stay procurement price up. Karnataka and Haryana give subsidies of Rs five in keeping with litre and Rajasthan supplies milk to primary college students at the side of the noon meal the use of supply from cooperatives. However, state officers say providing a subsidy in Maharashtra will probably be difficult as payments in the trade aren't virtual, not like in Karnataka. Schemes like providing milk at the side of mid-day foods, which could use 23 lakh litres day-to-day, have additionally no longer taken off.
What’s extra, the dairy sector in Maharashtra is fragmented, making collective pricing difficult. “We have 84 cooperative dairy unions, and in addition the personal sector. There is a large variation in pricing consequently,” says Arun Narke, director of Gokul, the largest milk cooperative in the Maharashtra. “The state has some keep an eye on over cooperatives nevertheless it has no keep an eye on on the non-public sector, which dominates the trade,” he provides.
Unlike Gujarat where cooperatives supply to Amul brand or MP where cooperatives unite underneath the Sanchi brand, Maharashtra’s dairies have more than one brands. “This leads to advertising bills for person brands and cuts into earnings,” Narke provides.
The reason: According to knowledge from the National Dairy Development Board (NDDB), farmers in Maharashtra gained a few of the lowest rates in the cooperative sector compared to different states (see graphic).
Rates offered by means of the personal sector, which controls 60% of the market in Maharashtra, are even decrease. Maharashtra’s non-public dairies are offering around Rs 16-19 in keeping with litre of cow milk to farmers.
Co-operatives offer reasonably upper procurement rates of Rs 18.five to Rs 23 in keeping with litre. Compare this to NDDB knowledge from different states for the cooperative sector.
Uttar Pradesh, the most important manufacturer in the country, had a median procurement price of Rs 25.6 in keeping with litre in June. In Rajasthan, it's Rs 23.6; Madhya Pradesh offered Rs 25, Gujarat’s price was once the best possible at Rs 29.five and Punjab offered Rs 25. Karnataka offered Rs 27.50 which incorporates a subsidy of Rs five from the state in keeping with litre.
“Maharashtra has decrease procurement rates compared to several different states because the cooperative sector in the state is not sturdy. Cooperative unions tend to supply upper costs than the personal sector,” says R S Sodhi, managing director of Amul.
The state’s cooperative sector accounts for barely 39% of the dairy trade. Officials say until international costs crashed in November 2017, dairies in the state offered up to Rs 27 in keeping with litre; they are saying the present value dip is brief. “We will probably be keeping a meeting with dairies on Thursday to invite them to boost procurement value. Like Gujarat, now we have offered a subsidy for export of skimmed milk powder to help reduce stocks,” said state dairy building commissioner Rajeev Jadhav. Several states offer subsidies to farmers or has schemes to buy milk, which helps stay procurement price up. Karnataka and Haryana give subsidies of Rs five in keeping with litre and Rajasthan supplies milk to primary college students at the side of the noon meal the use of supply from cooperatives. However, state officers say providing a subsidy in Maharashtra will probably be difficult as payments in the trade aren't virtual, not like in Karnataka. Schemes like providing milk at the side of mid-day foods, which could use 23 lakh litres day-to-day, have additionally no longer taken off.
What’s extra, the dairy sector in Maharashtra is fragmented, making collective pricing difficult. “We have 84 cooperative dairy unions, and in addition the personal sector. There is a large variation in pricing consequently,” says Arun Narke, director of Gokul, the largest milk cooperative in the Maharashtra. “The state has some keep an eye on over cooperatives nevertheless it has no keep an eye on on the non-public sector, which dominates the trade,” he provides.
Unlike Gujarat where cooperatives supply to Amul brand or MP where cooperatives unite underneath the Sanchi brand, Maharashtra’s dairies have more than one brands. “This leads to advertising bills for person brands and cuts into earnings,” Narke provides.
Dairy farmers in Maharashtra among lowest paid
![Dairy farmers in Maharashtra among lowest paid]()
Reviewed by Kailash
on
July 19, 2018
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