Dairies cut milk procurement price by 11% in two months on bumper supply

Benefits not to be passed to consumers, as companies seek to compensate Rs 30/kg loss in SMP making

Dairies have cut milk procurement prices by 11 per cent over the past two months following bumper arrivals from farmers during the ongoing peak supply season.

Strategically, dairies have reduced milk procurement prices by Rs 3 a litre in three equal phases to offer it currently at Rs 24 a litre. The first cut of one rupee a litre was reported in around the first week of August when all the milk farmers in Maharashtra were demanding farm loan waivers. Thereafter, a second one-rupee price cut was announced in early September. Dairies reported a third cut of similar amount on Dussera.

Anticipating