Excess production caused milk prices to collapse; Exports disrupted due to Corona, 15 percent increase in production milk prices dropped due to excess production in maharashtra zws 70

Pune: Due to Corona, the export of dairy products is almost at a standstill. Stocks of milk powder, butter are lying. Demand from other states and dairies has also stagnated. Due to the increase in milk production by 15 percent during this period of lack of demand for milk from the processing plants, the problem of excess milk has become serious in the state and milk prices have fallen.

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According to Pritam Shah, head of Govardhan Dairy, the export of milk products like milk powder, casein, butter and cheese from the state has been disrupted since the lockdown due to Corona. Milk processing plants across the state have stockpiles of milk products. Due to this, the demand for milk from the processors has decreased. Maharashtra being the leading state in milk production has demand for milk from Kerala Milk Federation, Bihar Milk Federation, Delhi and big processors like Mother Dairy. But, now due to expected milk production in that part of the country, the demand for milk in the state has also stagnated. Milk production in the state has increased by 15 percent during this period of low demand for milk. Due to this, the problem of excess milk has arisen in the state and the prices of milk have collapsed. Meanwhile, Shripad Chitale, Director of Chitale Dairy, has also confirmed that the export of dairy products is disturbed.

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26 to 32 rupees for cow’s milk

The state government has ordered private and cooperative milk unions to purchase cow’s milk at the rate of Rs 34 per litre. Still, the purchase of cow’s milk in the state continues at the rate of Rs. 26 to 32 per liter. The average daily production of milk in the state is one crore nine lakh liters. With an increase of 10 to 15 percent, milk collection has gone up to 2 crore 15 lakh litres. Cow’s milk prices have collapsed due to excess milk production during periods of low milk demand.

Subsidy to farmers is the only way to export

Before Corona, the state government had given subsidy to the export of milk powder. Due to this, milk powder was exported from the state. Exports have also stopped since the subsidy was stopped. Export subsidy is needed to resume these exports. Also there is a need to give per liter subsidy directly to the milk producing farmers. Without these two ways, it is not possible to solve the serious problem of milk price. A single milk union is buying milk at Rs 32 per liter where there is competition and Rs 26 per liter where there is no competition. Also due to unannounced commercial competition among milk processors, the problem of milk price has become serious, said Kutwal Foods Pvt. Prakash Kutwal, Head of Ltd. has said.