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Following the national trend, milk prices in Telangana has seen an increase.
Vijaya Dairy, a cooperative player, has announced increase of Rs 2 a litre in the State. Other dairies too are planning to increase the price. Beginning today, Vijaya Dairy has decided to increase the price from Rs 42 to Rs 44 a litre.
The increase is expected to fetch an additional income of about Rs 2 crore to the cooperative dairy.
“There is a huge demand-supply gap. Scores of small and medium dairies have been shut down in the last few years, owing to sharp increase in cost of production and almost stagnant procurement prices. This (price increase) is waiting to happen,” Bal Reddy, President of Progressive Dairy Farmers’ Association, told BusinessLine .
“We hope the price increase will be passed on to the farmer,” he said.
Industry experts still expect scope for further increase in the prices. “There was a glut some time ago. But the supply has come down subsequently. Procurement of milk has seen a 25 per cent decline in Maharashtra, 20 per cent decline in Tamil Nadu and 10 per cent each in Andhra Pradesh and Telangana,” a top executive of a private dairy said.
“The shortage of supply is showing now and prices are in for a course correction to meet the demand-supply equation,” he added .
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