Amid concerns over rising milk prices, government on Monday assured Lok Sabha that it was working on ways to increase milk production and said prices were not fixed by it.

Agriculture Minister Radha Mohan Singh also listed various initiatives for the milk industry including allocation of Rs 500 crore towards improving the species of domestic milch animals.

During a half-an-hour discussion on rise in milk prices, members from various parties said producers are not getting the remunerative prices.

“The government is working on (ways) to increase milk production,” Singh said. However, he acknowledged that pace of growth in milk production has not taken place adequately.

According to the Minister, the price of milk is not regulated by the government. Price of milk has increased by 14.50 per cent in the last one year.

Between May 2013 and May 2014, the average procurement price of milk has risen by 17.68 per cent while the consumer price (sale price) of milk has risen by 14.50 per cent in the co-operative sector. India produced nearly 138 million tonnes of milk last year.

Noting that milk price has increased, Virendra Singh (BJP) said farmers are not getting proper price for their produce. He also suggested that allowing producers to export milk would help in getting them good prices.

Ram Kripal Yadav (BJP) said many farmers have stopped milk production as they are not getting the right price. Brij Bhushan Saran (BJP) and Rajeev Shankarrao Satav (Cong) also spoke.

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