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The State Government has decided to give subsidy to cooperative dairies that convert their surplus milk to milk powder.
The State Cabinet on Wednesday cleared a proposal to give a subsidy of Rs 2 on every litre of milk having fat content of more than 8.5 per cent.
The subsidy will help the dairy industry that has been hit by excess production and complete ban on export of milk power. In Maharashtra the dairy industry is primarily managed by cooperative societies, which are controlled by farmers.
Due to the export ban, all the 11 powder making plants have stopped production since last two months and they are carrying a huge inventory.
A board member of a leading cooperative dairy said that due to excess supply the dairies were procuring milk from farmers at Rs 15 a litre as against Rs 19 last year. Before the ban, about 20 lakh litres of milk used to be procured for milk power. The dairies don't have enough space to store the milk, the member said.
“Ever since the ban came into force, the industry has been seeking a subsidy but only after long negotiations that our demand has been finally met. If the State Government had accepted our demand, when the ban came into force, milk wastage could have been curtailed,” the member said.
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