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Regional milk producers in the unorganised sector have raised their selling prices by five per cent from the beginning of this month.
There are reports that those in the organised sector might act similarly, as inputs have got costlier.
Unorganised sector producers (tabelawallas) have raised milk sale prices by Rs 2 a litre, to Rs 57, to pass animal feed price rises on to consumers. In some suburbs of this city, prices have risen by Rs 3, to Rs 58 a litre.
“We do not have any option,” said C K Singh, a senior official of the Aarey Milk Producers Association, which has 360 members, having a total of about 17,000 animals. In the past three months, animal feeds have become costlier by 25 per cent — paddy straw, for instance, is up by Rs 2, to Rs 8 a kg. Green grass, transported here from 100 km away, has become costlier by Rs 2.50–3 a kg, to Rs 10-11 a kg. Animal feed grade pulses have become costlier by Rs 20 a kg, to Rs 84 a kg in the past year.
Also up is investment in animals. Each milking buffalo costs up to Rs 100,000, a rise of Rs 10,000–20,000 over recent months.
“All these additional costs need to be passed on to consumers. Surprisingly, despite being such an important sector, the government has granted no relief to us. The milk price rise is for our survival, not to make any additional profit,” said Singh.
Those in the organised sector are holding on to the price. Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets the Amul brand of milk and its derivatives, plans no change for the near future, said R S Sodhi, managing director. GCMMF had previously raised milk prices last May, to Rs 46 a litre for full-cream milk. Last month, Sodhi had hinted that they’d review the situation in the monsoon season.
With an estimated 25 per cent decline in overall production at 12 million litres a day, GCMMF sells around a third in Gujarat and the rest in other states, including Maharashtra. Amul has intended to invest Rs 50,000 crore to expand its network and set up at least 10 new processing plants across the country in two years.
Amul’s competitor, Mahananda Dairy, has also not raised its milk prices so far. Said a senior official: “Animal feed prices have gone up severely. But, we have not taken any decision on a milk price rise, probably because of a lower diesel price.”
An official with Delhi based Paras Dairy, said, “We have not taken any decision yet on price hike of milk. Rising feedstock price, however, is squeezing our profit margins.”
