The Orissa State Co-operative Milk Producers Federation Ltd (OMFED) will focus on the product diversification and cost cutting for improving the fiscal health of the organiasation. It incurred a provisional loss of Rs 2.5 crore during 2007-08.
It plans to introduce low fat double tonned milk in next 2-3 months and has chalked out plans for setting up an ice-cream plant at an investment of Rs 2 crore.
OMFED today announced to increase the procurement price of milk collected from farmers by Rs 2 per litre effective from 21st of the current month. More than 3 lakh farmers will get Rs 13.76 per litre of milk sold to OMFED compared to Rs 11.76 earlier.
The new price will be applicable for the milk having standard 4 percent fat and 8.5 percent SNF, Suresh Chandra Mohapatra, chairman, OMFED said.
He said, though the procurement price for milk farmers is being changed, there will not be any increase in the price of OMFED milk in the market. The additional burden due to increase in the procurement price will be absorbed through various cost cutting measures.
The Federation also intends to start an incentive scheme for the retail sellers whereby subsidy upto 50 percent could be given to the milk sellers on purchase of bottle cooler. While there are about 1000 retailers having bottle coolers at present, this number will be increased to 2000 over a period of 3 to 4 years.
Stating that subsidy given on the cattle feed, interest paid on Rs 20 crore cash loan and Rs 10 crore terms loan and overstaffing have been responsible for the loss of the organisation in 2007-08, Mohapatra said, a detail analysis of the working of the organisation will be taken up.
Announcing that the price of the 200 ml flavoured milk pouch is being reduced to Rs 12 per pouch from Rs 15 earlier, Mohapatra said, the sale of Peda (milk cake) packet priced at Rs 25 has also started. Santosh K Sarangi, managing director, OMFED was also present.