Cash crunch slows down milk procurement in winter months

Most dairies under GCMMF admitted that procurement has slowed down by around 5 per cent

Liquidity crunch in the banking system has forced farmers to sell milk to unorganised sector players (even if it is at lower rates), thus slowing down the procurement growth during the flush winter months. Procurement growth, which traditionally grows by around 10 per cent during winter months, has slowed down to 2-3 per cent, say most players, including the country’s largest dairy cooperative, Gujarat Cooperative Milk Marketing Federation (GCMMF). 

The National Dairy Development Board (NDDB) informed that milk procurement by cooperatives in the country has gone up by about one per cent in November 2016 compared to same month in the