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 Price of cow milk to go up by Rs 2; buffalo milk price to rise by Rs 3

With effect from May 25, 2013, the price of cow's milk will rise by Rs 2 per litre (to Rs 31 per litre, excluding delivery charges), and that of buffalo's milk by Rs 3 per litre (to Rs 40 per litre) across Maharashtra. The hike will not only affect the prices of milk, but also those of ghee, ice cream, yoghurt and shreekhand.

For the last few days, officials from dairy co-operative societies across Maharashtra have been lobbying with the state government. They also met state chief minister Prithviraj Chavan to discuss a hike in the rates of milk due to higher operational costs, and the outcome was positive. The hike will become applicable to all state government-owned and cooperative diaries.

Industry's reactions

According to Devendra Shah, chairman, Parag Milk Foods Pvt. Ltd, the hikes, which earned the state government's nod, will be beneficial to farmers, who are incurring losses owing to the high costs of dairy products.

He said, “The hike in the prices of milk will have a positive impact on the industry. The state is currently reeling under drought-like conditions, and that is the reason fodder and water are not available.”

“As far as farmers are concerned, their situation is very grim. They are unable to fetch the appropriate price in the market, and are incurring heavy losses. The price hike will motivate the farmers to produce more milk,” Shah said.

N S Patil, assistant general manager (procurement), Gokul Dairy, said, “I am happy with the state government's decision to hike the milk price, because it will help the farmers earn. The production costs have increased and 60 per cent of the money is utilised in feeding.”

“It would burn a hole in the common man's pocket, but will benefit the farmers. The state government has also increased the rate of procurement. As a result, the farmers will now get Rs 18.50 per litre for cow's milk and Rs 27.50 for buffalo's milk,” he informed.

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