Question : Sale of Milk by Cooperatives

(a) whether the cooperatives sell milk in the market to the consumers at the rate of 50-55 rupees per litre whereas they purchase milk at the rate of merely 25-30 rupees per litre from the farmers and livestock rearers in the country including the States of Bihar, Maharashtra and Rajasthan who make their important contribution to the market and dairy sector;
(b) if so, the details of the action plan being formulated by the Government in view of the same;
(c) whether the 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;
(d) if so, whether the Government proposes to provide minimum support price of milk to ensure remunerative price for milk and milk products to the farmers; and
(e) if so, the details thereof

ANSWER

THE MINISTER OF STATE FOR FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
(DR. SANJEEV KUMAR BALYAN)

(a) & (b) The price of milk is paid based on the fat and SNF 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. 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.

(c) 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. Hence it is not correct to say 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, although there may be regional variations.

(d) & (e) 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.

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