August 6, 2012

Indian dairy farmers threaten to stop milk supply to Milkfed

In case milk procurement price is not hiked, India's dairy farmers have threatened to stop milk supply to Milkfed.

"We will launch our agitation on mass scale, which will include stopping milk supply (to Milkfed) if milk procurement rate is not increased by Milkfed by August 8," Progressive Dairy Farmers Association (PDFA) President Daljeet Singh Gill told reporters here. He said the final decision to launch agitation will be taken on August 9.

However, Punjab State Cooperative Milk Producers' Federation Ltd (Milkfed) authorities said it is seized of the matter and it will take decision with regard to rates at appropriate time, though it admitted that dairy sector was going through a bad phase.

About 35% hike in cattle feed cost in the last one month is threatening the viability of dairy business.

Farmers under the banner of PDFA are demanding INR485 (US$8.7) per kilogramme fat as milk procurement rate against INR405 (US$7.3) per kilogramme fat which they are getting at present. Milkfed raised milk procurement rate from INR395 (US$7) per kilogramme fat to INR405 (US$7.3) in September last year.

Progressive farmers, who own 50-500 cattle per farm, contribute about 35% in total milk procurement by Milkfed. Milkfed is currently procuring total of eight lakh litres per day.

"Dairy farmers have not been given any price hike in last about one year despite price of cattle feed and fodder rose to a record level," Singh said adding, despite asking Milkfed repeatedly.

Describing the current "crisis" facing dairy farmers as "worst" in last decade, PDFA rued because of drought-like conditions prevailing in the region, the cattle feed and fodder cost have gone by up to 35% in the last one month, making extremely difficult to even pay loan instalments.