Govt slashes rates, dairy farmers left high and dry
SAY DAIRY FARMING IS NO MORE PROFITABLE AND THEY ARE PLANNING TO SHUT THEIR BUSINESSES; NO CHANGE IN MARKET RATES OF VITA PRODUCTS
KARNAL: Dairy farming is no longer a profitable business in the state, thanks to the cut in the prices of milk by Haryana Dairy Development Co-operative Federation Ltd (Vita), allege farmers.
The farmers allege that the Haryana government has brought down the rate of milk containing 10% fat from ₹62 to ₹54. Further, the price of milk containing 3.5% fat has been brought down to ₹23.40 from ₹24.34.
“The government has not only taken back ₹5 per litre bonus on the milk purchased from April to November, but has also slashed the rates by about ₹5 per litre in the past few months,” alleged Kanhaiya Lal, a dairy farmer from Yamunanagar district.
“As per the average, a dairy farmer gets ₹22-24 for a litre of milk, whereas the prices of mineral water are fixed at ₹20 per litre,” he added.
He said that dairy farming was no more profitable due to the increasing cost of production and lack of support by the government.
The owners of milk purchasing centres also have the similar complaints as they say that if farmers do not get remunerative prices for their produce, how they will earn.
“I am planning to shut my milk purchasing centre from the next month as this business is no more profitable and farmers not ready to sell their milk at rates which are far below the market rate,” said an owner of a dairy centre in Ladwa of Kurukshetra district.
Interestingly, Vita, has not cut the prices of its products and is earning good profits due to an increase in demand for its products in the market.
The price of its liquid milk remains around ₹50 per kg, ghee ₹470 per kg and cheese ₹260 per kg.
The officials of Haryana Dairy Development Co-operative Federation Ltd, however, are not ready to speak on the issue. Officials on the condition of anonymity, however, say that Vita, being the biggest buyer of dairy milk in the state, has cut the price to farmers due to countrywide fall in the prices of milk powder.
Also during the wedding season, the demand of milk and milk products rises and this is the best period for Vita to earn profits.
The cut in prices is being considered as an effort to encourage dairy farmers towards the indigenous (Desi) cows as the prices of indigenous cow milk is higher as it contains higher fat content as compared to foreign breeds.
The BJP government had earlier announced to pay ₹2 per litre extra for milk of indigenous cows.
When contacted, a senior officer of a cooperative milk union of Vita said, “The reason behind the fall in prices is the fall in demand as some private players are not purchasing milk from farmers due to fall in milk powder prices.”
“The farmers are complaining about the price cut as ₹5 per litre subsidy which is given to farmers also in month of November. During this season, the prices fall as there are few buyers of milk powder internationally,” he added.