The Reason Why Dairy Companies in India are Increasing Milk Procurement Prices

Dairy farmers are receiving up to 12% more price for milk since last one week, which can increase in the upcoming weeks as supplies from them are low, top dairy executives said. However, this increase will not affect retail prices and the incentive is to help farmers take better care of cattle for higher milk production that dropped by 3-4% since the lockdown last year, said RS Sodhi, MD of Gujarat Cooperative Milk Marketing Federation (GCMMF). Sodhi said we have increased the cow & buffalo milk procurement price by Rs 3/kg from this month as there is scope to increase farmers’ prices by Rs 3-4 a kg. However, it will not affect consumer prices. Currently, farmers in Maharashtra were getting Rs 28/kg for cow milk while for buffalo milk it was Rs 40 a kg, Sodhi added. Gujarat Cooperative Milk Marketing Federation or Amul will look at the demand as well as supply situation and accordingly increase the procurement prices in the coming month, Sodhi informed. Rahul Kumar, MD of Lactalis ...