Nagpur: An overall fall in milk output and rising input costs for the farmers have led to dairy brands repeatedly increasing the procurement price. The sale price, on the other hand, has not seen a proportionate hike.
Despite rising cost of buying milk, dairy industry sources say the brands are preferring not to hike the sale price fearing loss of customer base. Companies are waiting their competitors to take the first step.
Anil Upadhyaya from Dinashaw’s, which has major presence in Nagpur, said the company has effected 6 to 7 hikes in the last two months. This has increased the buying price by Rs8 to Rs9 a litre. However, the sale price has been hiked only by Rs2 a litre. Normally, the industry players wait for the national brands to take the lead or else it may end up in loss of customers, he said.
RS Sodhi, managing director of Gujarat Cooperative Milk Marketing Federation (GCMMF) which sells Amul brand, accepted that there was a major increase in the input cost for farmers due to inflation. He ruled out any shortage of milk output, however.
Sources in the producers’ union in Vidarbha say there is major dip in the milk output.
Even as lean season starts in summers, there has been major dip in collection as compared to same period last year, says sources in the milk cooperatives.
Bhandara Milk Producers’ Union is the biggest cooperative in the region. It has seen 50% dip in the milk collection per day. “Milk collection at our end has come down to 47,000 to 50,000 litres. This is half than what we got the same period last year,” said Karan Ramteke, managing director of the producers’ union at Bhandara.
Ramteke ruled out the dip was due to competition from private dairies. He said rates offered by their union are higher.
Farmers did not buy new animals due to the losses in Covid pandemic. High input cost has also made it difficult to carry on, ultimately affecting milk yield. At present, the procurement price is Rs48 for the best grade of buffalo milk and Rs34 for cow milk. There is a scope to increase it by a couple of rupees, he said.
A source in Gondia Cooperative said their procurement stands at 2,500 litres a day. This is due to payment issues, but there is an overall reduction in output too.
A source said there may not be shortage, but private industries have increased buying on account of higher rates of milk powder these days. Skimmed milk powder rates have jumped by nearly Rs90 a kg in the last six months.
