Covid-19: Milk Supply Chain Disrupted in Maharashtra

Out of 1.19 crore litre daily milk production in the State, 47 lakh litre is remaining unsold putting milk producer farmers under immense distress. Farmer organisations have demanded that the State government must provide financial assistance to milk producers. The State has about 46 lakh milk producer farmers and milk dairies which purchased milk at ₹33-34 litre have reduced the procurement price to ₹18-19 per litre after the Covid-19 outbreak.

“About 86 lakh litre milk is sold in pouches. But due to lockdown, this sell has come down to 67 lakh litre per day. The State government is purchasing 5 lakh litre milk to help farmers but still, there is 47 lakh litre excess milk. This has affected procurement price and has added immense burden on farmers” said former MP and Swabhimani Shetkari Sanghatana (SSS) leader Raju Shetti.

A cow milk producer farmer bears the cost of about ₹27-28 to produce one-litre milk and the same is being sold at ₹16-17 per litre after frequent lockdowns since March. SSS will launch a one-day agitation on Tuesday (July 21) to push for the demand seeking help to milk producer farmers. SSS had sought a government grant of ₹5 per litre for farmers.

Milk producer farmers have also opposed the Centre’s decision allowing milk powder imports under Tariff Rate Quota (TRQ). According to farmers’ organisation 50, 000 tonne milk powder quota exists in Maharashtra, and the Centre’s decision would further deteriorate the crisis.

The Union Ministry of Finance recently exempted imports of milk and cream in powder, granules or in other solid forms into India under the TRQ quantity. The notification allows 10,000 tonnes of imports for the fiscal with 15 per cent tariff on imported quantity.

Source: The article is extracted from The BusinessLine, July 18, 2020.