Farmers' woes deepen as milk procurement rate is slashed

The decision of the Mandya Milk Union Limited (Manmul) to slash the procurement price of milk by Rs 1.90 has shocked the farmers of the district, who are already facing crisis due to crash in price of crops like sugar cane, paddy and sericulture produce.

The Manmul has reduced the price of milk procured from Rs 21.07 per litre to Rs 19.17. It may be noted that Manmul has been reducing the procurement rate, citing various reasons, despite the rise in production costs since November 2014.

Milk powder

The skimmed milk powder, which was earlier sold at Rs 180 to Rs 200, is now being sold at Rs 130. Hence, 2,500 metric tonnes of powder is lying in the godowns of Manmul.

Record production

Mandya district stands first in milk production in the State. Milk production, which was 6.50 lakh litres in 2014, has increased to 7.60 lakh litres. While 2.5 lakh litres is sold as milk sachets, 28,000 litres as curds, 80,000 litres as Goodlife packet, the remaining is converted into skimmed milk powder.

Incentive due 

The government provides an incentive of Rs 4 per litre of milk. But, unfortunately, the incentive amount which was distributed once in four or six weeks, has not been released since 24 weeks (six months), causing inconvenience to milk producers.

Rajya Raitha Sangha district unit president Shankaregowda said Rs 54 crore, supposed to be distributed among farmers, is pending.

The dairy farmers have been visiting the offices, seeking payment of the incentives, but without any results, he added.

He complained that the price of fodder has increased. The fodder, which was sold at Rs 651 per 50 kg bag before April 2015, has been increased to Rs 736.

The farmers are already in trouble, due to the crash in prices of sugar cane, paddy and other crops. Now, the reduction in the procurement price of milk has increased their woes, he said.
He urged the authorities concerned to rollback the procurement price of milk immediately.
However, Manmul Managing Director Krishnegowda said the prices have been slashed temporarily due to the crash in price of skimmed milk powder.