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The Covid-19 crisis has also affected the private and co-operative dairies in Maharashtra.
The former President of Indian Dairy Association and board member of Gokul Dairy, Arun Narke, said that it has also led to an inventory build-up, which includes almost 40,000 tonnes of milk powder.
Gokul Dairy is one the largest co-operative dairies in Maharashtra.
Narke said that due to the depressed rates, there are no takers for milk powder in the export market. As the schools are also closed the State government’s procurement under the mid-day meal scheme has also not commenced. The co-operative dairies have started making losses and their capital is getting locked.
He said that the Gokul dairy, a co-operative institution, has to procure about 12 lakh litres of milk from the farmers per day. But it can only process and sell about 10.5 lakh litres, while the rest of the milk is converted into milk powder. This adds to the already bloated inventory.
Narke said that the State government could create a buffer stock of milk powder for which the powder could be procured from the cooperatives at no-profit-no-loss basis. Gokul itself has about 1,800 tonnes of milk power costing about Rs 40 crore.
Funds are getting stuck in the process, he said.
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