AN UNPRECEDENTED rise in global commodity prices has resulted in dairies across the country upping their procurement prices. While some of the dairies have already passed on the increased cost to the consumer, others have decided to correct the commission they pay their dealers.
The present price rise, however, has failed to result in windfall gains to farmers as cost of raw materials, especially that of protein (Ricebran cake, de-oiled cotton seed cake etc), has appreciated manifold.
On Tuesday, Dairy Farmers and Processors Welfare Organization — the umbrella body of private and cooperative dairies in the state — announced a Rs 3/liter increase in milk procurement price in the state. Thus, dairy farmers in the state would now be paid Rs 33/liter for milk with 3.5 per cent fat and 8.5 per cent SNF (solid-not-fat).
This is the highest price received by farmers in the state so far, Dr Vivek Ksheersagar, managing director of the Pune District Cooperative Milk Producers Union which owns Katraj Dairy brand, said. “We have seen prices rising to Rs 31-32/liter but this is quite historic,” he added. Global and domestic forces, dairy owners said, have pushed the price graph north. At the global front, Skimmed Milk Powder (SMP) prices have touched an all-time high.
On March 15, the fortnightly SMP auction on Globaldairytrade — the online platform owned by New Zealand’s cooperative dairy giant Fonterra — touched a five-year high of $4,545/tonne. Domestically, SMP is trading at Rs 300/kg and white butter at Rs 390/kg. Higher demand of SMP due to the easing of Covid-19 restrictions across the world along with the Ukraine-Russia war has pushed prices up.
