Consumers would not have to shell out more for their milk packets this year. Excess milk production and huge carrying forward inventory of milk powder from the previous season are expected to keep milk and milk product prices in check this year.
New Delhi: Consumers would not have to shell out more for their milk packets this year. Excess milk production and huge carrying forward inventory of milk powder from the previous season are expected to keep milk and milk product prices in check this year.
Experts believe that farmers might get less returns for their produce if dairies are unable to export milk powder or divert it to government schemes like the mid-day meal scheme.
It is seeking incentives to export skimmed milk powder (SMP) in the current scenario. "There is huge inflow of liquid milk this year. Milk prices will not increase this year, which will be a relief for consumers," said RS Sodhi, MD, Amul. Over the past few years, prices have been increasing by Rs 2 a litre annually, he said.
To ensure that milk prices being paid to farmers don't fall further, Sodhi said the cooperative has requested the government to give an export subsidy of 10% on SMP. "The country has a stock of over 1.25 lakh tonne SMP. If we are able to export half of it or if the Centre creates a buffer stock, it will ease dairy cooperatives of huge inventory and ensure that farmers get a good price," said Sodhi.
"We are giving farmers a better price than other dairies, but still we had to reduce procurement prices by Rs 3 a litre in the past one month with average price for cow's milk at Rs 27 a litre and Rs 38 a litre for buffalo milk," said Sodhi. Similarly, Mother Dairy said current milk procurement of 47 lakh litres of milk per day, was around 20% higher than the same period last year. "At Mother Dairy, we expect consumer milk prices to be stable in the near future," said a company spokesperson.
Early this week, the North Indian Dairy Manufactures Association had met Agriculture minister Radha Mohan Singh to seek incentives on the export of milk-based products. Rajendra Singh, MD, Paras Dairy, said the government was looking at the stock position and were expecting a 7% export subsidy for dairy products including casein, whole milk powder and SMP. "We are all waiting for Amul to correct liquid milk prices and we will follow suit," he said.
Dairies in South India too are gung-ho about the prospects of higher production. "Under the school milk programme scheme in Karnataka, 150 ml milk is being giving to 1.04 crore students in government schools. Apart from that, an export subsidy for SMP will enable us to export to Bangladesh, Qatar and Singapore," said an official from the Karnataka Milk Federation where daily procurement has crossed the 77 lakh litre-mark early this month.
Experts believe that farmers might get less returns for their produce if dairies are unable to export milk powder or divert it to government schemes like the mid-day meal scheme.
It is seeking incentives to export skimmed milk powder (SMP) in the current scenario. "There is huge inflow of liquid milk this year. Milk prices will not increase this year, which will be a relief for consumers," said RS Sodhi, MD, Amul. Over the past few years, prices have been increasing by Rs 2 a litre annually, he said.
To ensure that milk prices being paid to farmers don't fall further, Sodhi said the cooperative has requested the government to give an export subsidy of 10% on SMP. "The country has a stock of over 1.25 lakh tonne SMP. If we are able to export half of it or if the Centre creates a buffer stock, it will ease dairy cooperatives of huge inventory and ensure that farmers get a good price," said Sodhi.
"We are giving farmers a better price than other dairies, but still we had to reduce procurement prices by Rs 3 a litre in the past one month with average price for cow's milk at Rs 27 a litre and Rs 38 a litre for buffalo milk," said Sodhi. Similarly, Mother Dairy said current milk procurement of 47 lakh litres of milk per day, was around 20% higher than the same period last year. "At Mother Dairy, we expect consumer milk prices to be stable in the near future," said a company spokesperson.
Early this week, the North Indian Dairy Manufactures Association had met Agriculture minister Radha Mohan Singh to seek incentives on the export of milk-based products. Rajendra Singh, MD, Paras Dairy, said the government was looking at the stock position and were expecting a 7% export subsidy for dairy products including casein, whole milk powder and SMP. "We are all waiting for Amul to correct liquid milk prices and we will follow suit," he said.
Dairies in South India too are gung-ho about the prospects of higher production. "Under the school milk programme scheme in Karnataka, 150 ml milk is being giving to 1.04 crore students in government schools. Apart from that, an export subsidy for SMP will enable us to export to Bangladesh, Qatar and Singapore," said an official from the Karnataka Milk Federation where daily procurement has crossed the 77 lakh litre-mark early this month.