Vadodara District Cooperative Milk Producers Union (VDCMPUL) today said it has decided to increase the milk procurement prices by Rs 70 per kg of fat.
"We have decided to increase the milk procurement prices, with effect from May 11, from the current Rs 570 per kg fat to Rs 640 per kg fat," VDCMPUL Manging Director Jahangir Daruwala told PTI here.
This will benefit nearly 1.25 lakh milk producers in three districts of Vadodara and the tribal-dominated area of Chhotaudepur and Narmada, he said.
There are 1,267 milk producers' cooperatives in these three districts, of which VDCMPUL, commonly known as Baroda Dairy, collects around 6.30 lakh litres per day from them, he said.
"We have revised the prices due to several factors, including demonetisation which had an impact on the cash availability. For most farmers, milk is the only regular source of income," he said.
Out of the daily collection of over 6 lakh litres, nearly 4 lakh litres is used for meeting the daily requirement of Vadodara city, while the surplus is used for making various milk products like sweets, cottage cheese among others.
Daruwala said due to the summer season, the demand for butter milk has surged to 90,000 litres per day from an average of 60,000 litres per day.
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