Maharashtra govt fixes milk procurement rate at Rs 25 per litre

Dairy farmers in Maharashtra, who had been on boil for the past four days, finally called off their strike on Thursday, after the state government agreed to a key demand. Dairy Development Minister Mahadev Jankar announced in the Legislative Assembly last evening that the government has decided to fix a rate of Rs 25 per litre for buying milk from dairy farmers with effect from July 21.

Henceforth, the federations of milk suppliers as well as the processors' bodies will have to buy milk at the said rate. At present, dairy farmers are paid between Rs 14 and Rs 20 per litre, but dairies pass it on to consumers across the state at a significant markup.

The farmers had been holding protests in several parts of the state since Monday, including spilling milk in the streets and threatening to block state highways with their cattle. They were demanding a fair procurement price for milk, a direct subsidy of Rs 5 per litre and a GST waiver on butter and milk powder. Although the protest had not created an acute shortage of milk, the impact was felt particularly in Mumbai and Pune, where supplies were partially affected. But the agitation was beginning to intensify - with families of dairy farmers also pitching in - when the state government acquiesced to hike up the milk-purchase rate.

Raju Sherri, the Swabhimani Shetkari Sanghatna leader spearheading the agitation, called off the strike last evening after meeting chief minister Devendra Fadnavis at the latter's official residence in Nagpur. The city is currently hosting the Monsoon Session of the state legislature. "We will keep a tab on whether farmers are actually getting that money," Shetti added.

Jankar also announced in the Assembly that while no subsidy would be given for milk sold in pouches, "Rs 5 per litre conversion subsidy would be given" for the milk not sold in pouches. "The subsidy would go to either the milk supplying body or the one converting it," he added. This move will cost the state exchequer Rs 75 crore per month.

The minister also clarified that the milk powder producers who avail of this subsidy would miss out on the incentive subsidy for exports. To remind you, on July 10, the government had announced that milk powder and milk would get incentive subsidies of Rs 50 (per kg) and Rs 5 (per litre), respectively, for export. (With PTI inputs)

Written by Sushmita Choudhury Agarwal