Milk prices to rise between Rs2 to Rs5 in Maharashtra

Consumers in Maharashtra will have to pay more for milk from 1 April, as the state government has decided to hike prices by Rs2 per litre for cow's milk and Rs5 per litre for buffalo's milk. A litre of pasteurized cow milk, currently sold at Rs23 at government outlets, would now cost Rs25, while buffalo milk, currently Rs26, would cost Rs31.

This is fourth time the state government has increased milk prices in the last three years, with the most recent being a Re1 hike in January. The new prices will only be for the milk sold at government-run outlets (mainly Aarey milk); but private sellers and co-operative agencies are bound to similarly raise prices.

Raut said that a committee formed to study the price rise observed that the rates at which the government purchases milk from the farmers are far too low. While private companies pay up to Rs14.50 for cow milk and Rs21 for buffalo milk, the government pays Rs12.50 and Rs16.20 respectively. By hiking the rates, the state government hopes to help the milk producers in the rural areas.

The state government has correspondingly increased the procurement price of cow milk by Rs2, of which Rs1.50 will go to the farmers, who will now get Rs14. The balance 50 paise will be distributed among co-operatives and booth vendors. Similarly, the procurement price of buffalo milk will be be increased to Rs20.50.

Also, for the first time in 30 years, Aarey would start supplying buffalo milk to consumers. The dairy is not getting any buffalo milk yet, and would market it as 'full cream milk' once supply begins after the price rise.

Dairy development commissioner R D Shinde said, "We are pleased that the government considered the problem faced by milk producers and has announced to compensate them in competitive rates. This will sort out the milk shortage, and we will try to achieve the average milk procurement level."

The state government also announced that it would to form a task force to study the various issues faced by Aarey dairy. The four-member committee will go into issues like price regulation, milk adulteration, quality control, etc. It will also evaluate properties owned by the dairy, check on staff availability and excess staff, production output, and the dairy's future scope. A detailed feasibility report will be submitted to the state government in two months.