Here is what milk companies charge from customers and pay to farmers
New Delhi, July 10: Ministry of Fisheries, Animal Husbandry & Dairying was asked on Tuesday whether it was true that dairy farmers are gradually shifting away from this business as daily cost of feeding of cows and buffaloes being higher and they are not getting remunerative price for milk.
Giving the written reply; Minister of State for Fisheries, Animal Husbandry and Dairying Sanjeev Balyan told Lok Sabha that the price of milk is paid based on the fat and SNF (solid not fat) content in the milk.
"The Co-operative Milk Union sell full cream milk (6% fat and 9% solid not fat) to the consumers at the rate of Rs 48 to 56 per litre and pay Rs 29 to 39 per litre for milk (6% fat and 9% solid not fat) to the farmers," said Balyan.
The Minister said that it was not correct to say that dairy farmers were shifting from this business as they get maximum share of consumer rupee in the world.
"Most of the dairy cooperatives pay to their primary producers the maximum share of the consumer rupee (about 60-80 per cent) which is highest in the world. Further member farmers also receive annual bonuses plus various input services like veterinary services, Artificial Insemination (AI), cattle feed at subsidized rates etc and around the year market access by the cooperatives," said the Minister.
To drive home his point, Balyan cited the data of milk production in the country.
"The farmer members of dairy cooperatives have increased from 15.84 lakh in 2015-16 to 16.57 lakh in 2017-18. The milk production in the country has increased from 155.49 million tonnes in 2015-16 to 176.34 million tonnes in 2017-18. As per the National Accounts Statistics 2018, the value output of milk group has increased from Rs 560777 Crore in 2015-16 to Rs 614387 Crore in 2016-17," the Minister informed the House.
Balyan also said that there is no role of the government in controlling the price of milk.
"Government does not control prices of milk. This department does not have any proposal to fix MSP for milk in the country. Milk is a highly perishable product and prices are decided by the Cooperative and Private dairies based on cost of production and demand," said the Minister.