Farmer union chief seeks relief for dairy sector, threatens to block milk supplies

Farmer union chief seeks relief for dairy sector, threatens to block milk supplies

Dhaval KulkarniUpdated: Monday, July 20, 2020, 11:05 PM IST
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After a day-long symbolic protest to seek relief for dairy farmers, the Swabhimani Shetkari Sanghatana (SSS) has threatened an indefinite blockade of milk supplies by milk producers if their demands are not met.

Raju Shetti, former Lok Sabha MP and SSS chief told FPJ that they had given a call for a one-day protest on Tuesday, wherein dairy farmers would not sell milk to dairies. “We are seeking that the state and central governments must take the initiative to provide relief to the dairy sector. The industry is in deep trouble due to the lockdown as demand for milk has dipped by 40%,” said Shetti.

While surplus milk was being converted into powder and butter, the prices of milk powder had fallen from the previous levels of Rs 530 per kg to Rs 160 per kg due to increased demand. Similarly, the rates for butter had also declined to Rs 210 per kg from Rs 340. This had led to farmers not being paid for their milk.

“Despite this, the Centre has decided to allow the import of 10,000 ton of milk powder. We are demanding that this decision be scrapped and the government maintain a buffer stock of 30,000 kg of milk powder,” said Shetti, who is aligned with the Congress and NCP.

He added that the SSS was also seeking a Rs 30 per kg grant for export of milk powder, scrapping GST on butter, ghee and milk products, and a Rs 5 per liter grant by the state to milk producers, to be deposited in their bank accounts.

“The protest on Tuesday is a symbolic one, and if our issues are not addressed, we will be compelled to launch an indefinite blockade of milk supplies,” threatened Shetti. Animal husbandry and dairy development minister Sunil Kedar has called a meeting of stakeholders on Tuesday.

In 2018, Shetti had similarly helmed a milk supply blockade to cities by calling on farmers seeking a hike in procurement prices.

Maharashtra’s milk production is estimated at around 3 crore liters daily, with an around 1.10 crore to 1.40 crore liters marketable surplus. Cow's milk forms around 70% of the collections. However, demand has fallen due to the lockdown and subsequent reduction in demand due to factors like economic distress, leading to a surplus of 20 lakh litres of milk daily.

This had led to milk federations and private dairies giving farmers just around Rs 22 per liter of milk (with three units of fat and six units of solid not fats or SNF), as against the cost of production of Rs 27 to 35, which pushed these farmers into losses.

The opposition BJP has also announced a protest on the issue on August 1.

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