Question : KCC for Dairy Farmers

(a) whether it is true that milk producers are facing a livelihood crisis due to an unstable market and insufficient remuneration for liquid milk;
(b) whether it is true that the demand for Skimmed Milk Powder (SMP) is decreasing in the domestic market and SMP’s export has been reduced by 70% during the last three years due to Russia’s and Chinese Dairy farmers; and
(c) whether it is true that out of the total 1.5 crore farmers in 230 milk unions in the country are not even one-fourth of the dairy farmers’ loan applications that have been approved under the Kisan Credit Card (KCC) programme?

ANSWER

THE MINISTER FOR FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
(SHRI PARSHOTTAM RUPALA)

(a) No Sir. The average milk procurement price paid to farmers for milk with 6% fat and 9% solids not fat (SNF) in Cooperative Sector has increased from Rs. 37.38 per kg in February 2021 to Rs. 39.93 per kg in February 2022 indicating a stable market.
(b) As per the information available from the Cooperative Dairy Sector, the price of SMP increased from Rs. 274.11per kg in February 2021 to Rs. 285.44 per kg in February 2022 thereby indicating an increase in demand in last one year. As per APEDA, the export of SMP has increased substantially from 935.41 MT during 2019-20 to 13,457.11 MT during 2020-21 and further to 36,668.19 MT during 2021-22 (April -2021 to January-2022).
(c) Government of India organized a Special drive for providing KCC to eligible dairy farmers associated with milk cooperatives and milk producer companies during 01.06.2020 to 31.12.2020. The total number of 14,80,355 KCC have been sanctioned (as on 25.03.2022) to dairy farmers amounting to Rs.10,974 crore.
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