Maharashtra govt mulls Rs 5/litre direct subsidy transfer to milk farmers

The Maharashtra government is planning to offer Rs 5/litre by way of subsidy transfer directly to milk farmers’ account as economic support, to prevent them from getting trapped in debt. The move follows widespread protests by farmers, whose realisations dropped sharply during sectoral lockdowns.

Amid protests from the Swabhimani Shetkari Sanghatana, a political outfit led by Member of Parliament Raju Shetti, the state government a held a virtual meeting with farmer institutions and associations, concerned political parties and other organisations on Tuesday. The state minister for Food, Civil Supplies and Consumer Protection Vishwajit Patangrao Kadam, assured the gathering that the proposal of Rs 5/litre of subsidy to milk farmers would be taken up in the next cabinet meeting and some positive decisions would be taken.

Following the assurance, the one-day protest was called off. The Sanghatana was bursting the tyres of tankers carrying milk and poured thousands of litres of milk on the road on Tuesday.

“It was a one-day protest which was called off on assurances from the state government. We also want the Centre to halt import of the proposed 10,000 tonnes of skimmed milk powder (SMP), create 30,000 tonnes of SMP buffer stock and offer an export subsidy of Rs 50 a kg on shipments outside India. If these demands are not met, we will take the next course of action in 8-10 days,” said Sandip Jagatap Kavi, State President, Swabhimani Shetkari Sanghatana.

The agitation started after milk procurement prices slumped to Rs 16 a litre in some parts of Maharashtra, as private dairies started taking undue advantage of sporadic lockdowns and eventual logistic disruptions. Milk being a perishable commodity, farmers were forced to sell at any price fixed by dairies.

About two months ago, liquid cow milk sold at Rs 30 a litre. This means, milk prices have declined by almost 50 per cent in two months.

“This demand destruction has given an opportunity to arm twist farmers on milk prices. Private dairies are now procuring milk for as low as Rs 16 a litre. In some regions, however, milk procurement price is slightly higher at Rs 18, but that is still way below the production cost of about Rs 25 a litre,” said Aabasaheb Deshmukh, Chairman, Shrimant Babasaheb Deskmukh Milk Producer Company Ltd, a Sangli-based dairy farmers-producers company registered with the state government.

Yogesh Pande, a social activist working for farmers, said, “Milk farmers are in deep distress as private dairies are taking undue advantage of farmers’ plight. Dairies are unwilling to increase milk procurement prices due to a sharp decline in the prices of SMP and butter.”

Milk farmers have also come together in others states such as Karnataka, Tamil Nadu, Andhra Pradesh and Telangana to protest againsy low prices.

“Farmers in Tamil Nadu poured thousands of litres of milk on road in protest,” said R S Sodhi, managing director, Gujarat Cooperative Milk Marketing Federation (GCMMF), the producer of Amul products.

Meanwhile, SMP prices have recovered in the international market to trade currently at $2,694 a tonne after hitting a low of $2,373 a tonne on May 5. The commodity is still trading 10 per cent below its record price of $3,036 a tonne this January.

In the domestic market, however, SMP is still quoted at Rs 120-130 a kg in wholesale due to weak seasonal demand.