The Hindu Business Line : Gujarat dairies to pay less for milk

Ahmedabad, Dec. 28 With the Assembly elections over and the Narendra Modi government reinstalled in Gujarat, many of the cooperative milk producers would now be getting less procurement prices for their produce but the end-user would have to pay the same price, between Rs 18 and 24 per litre depending on the area and the fat content.

Mr R.S. Sodhi, Chief General Manager of Gujarat Cooperative Milk Marketing Federation (GCMMF), told Business Line that although some of the milk producers had agreed to reduce procurement prices by six to 10 per cent, this would have no effect on the prices being paid by the milk consumers.

“In fact, these milk producers were already getting higher procurement prices. The dairies have just brought down the procurement prices at par with others in the State. Even otherwise, prices are lower in winter due to higher procurement of milk,” he said

Rate revision

The Banas dairy had reduced the procurement prices early this month from Rs 300 to Rs 280 per kilofat (per kg of fat in milk). The Mehsana dairy, which was paying between Rs 300 and Rs 310 per kilofat, is also following suit. Most of the dairies were paying around Rs 300 per kilofat as procurement prices.

The prices were kept up for milk producers, the voters, by some of the cooperative leaders who were contesting the Assembly elections. Uttam Dairy, which procures 75,000 litres of milk daily from and supplies mainly to Ahmedabad district, has reduced milk procurement price from Rs 300 per kilofat to Rs 280 per kilofat.

Procurement prices across Gujarat would soon be at par between Rs 270 and Rs 280 per kilofat.

Volumes

Together, the 13 cooperative dairy constituents of GCMMF, which owns the Amul brand, are currently collecting 95 lakh litres of milk daily, which is 20 per cent higher than in the last fiscal when the highest milk procurement was 89 lakh litres on January 15, 2007. Amul hopes to cross the 100 lakh litres mark in the coming months.

At present, the Mehsana dairy is the largest member of GCMMF, collecting a fourth of its procurement, 23 lakh litres daily, followed by Banas dairy with 20 lakh litres and Kaira dairy with 14 lakh litres.

The milk producers would now be getting Rs 13 crore per day instead of Rs 17 crore from their respective cooperative dairies due to downward revision of procurement prices.

More Stories on : Dairy & Dairy Products | Gujarat

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