Milk price may rise by Rs 1-2 a litre in Punjab, Chandigarh

Consumers in Punjab, Chandigarh and few places in Himachal Pradesh will have to pay more for milk as state-owned MilkFed is likely to hike retail prices by Rs 1-2 per litre next month, amid rising input costs.

“Hike in milk price has become absolutely necessary as there is an increase in overall input cost and shortage of milk is also being felt (during summer season). Moreover, we are also supplying milk at much lower rate (than other milk producers),” Punjab State Cooperative Milk Producers Federation (MilkFed Punjab), MD, Alaknanda Dyal told PTI here today.

Though she refused to divulge quantum of increase in retail milk rate to be made, official sources said that milk prices are expected to be jacked up by Rs 1-2 per litre.

“Our milk price increase will be lesser than what Mother Dairy had raised few days ago,” Dyal said. Mother Dairy has increased milk prices by up to Rs 3 per litre in Delhi and NCR region.

MilkFed, which sells milk under Verka brand, has raised milk procurement prices by Rs 30 per kg fat during last month for milk producers in order to boost milk supply.

“MilkFed is paying Rs 410-420 per kg fat to dairy farmers as against earlier rate of Rs 370-390 per kg fat,” an official said.

The ongoing intense hot conditions prevailing in northern region has also taken a toll on the availability of milk with MilkFed’s daily milk procurement dipping by 7-8 per cent as compared to milk purchase in the month of April.

“Our daily milk procurement is at present 10.50 lakh litre a day as against 11.55 lakh litres in the month of April,” an official said. “Because of heat stress during summer, the milk production usually goes down considerably,” he added.

Meanwhile, commercial dairy farmers have sought substantial hike in milk procurement prices from MilkFed to which they supply about 3 lakh litres a day.

“The present milk procurement prices are grossly insufficient to cover our cost...we demand prices be raised to Rs 510 per kg fat as done by Rajasthan state,” said Punjab Progressive Dairy Farmers Association, Daljeet Singh said.

“Our input cost has increased by Rs 6 per litre of milk. Therefore, MilkFed is required to raise retail rate by at least Rs 4 per litre to cover the cost,” he said.

Dairy farmers further said that with price of skimmed milk powder going up sharply to Rs 190-200 per kg, the MilkFed, which has about 5,000 tonne of SMP in its stock, should think over paying higher rates which could enable farmers to sustain their venture.

MilkFed, which is the biggest player in the organised dairy market in Punjab, gets milk from about 4 lakh small and big farmers.

COMMENT NOW