Gokul Milk reduces cow milk purchase price by Rs 3, farmers affected

Representational Pic

Western Maharashtra's dairy farmers have been dealt a blow as Gokul Milk and other major dairy unions, including Warana and Rajarambapu, have slashed the purchase price of cow's milk by Rs 3 per litre. This reduction comes immediately after the election results, leaving many farmers in financial distress.

Previously, Gokul purchased cow's milk from farmers at Rs 33 per litre. Now, this rate has dropped to Rs 30 per litre, marking a significant setback for milk producers. While the state government has fixed a standard price of Rs 28 per litre for milk with 3.5% fat and 8.5% SNF starting from October 2024, unions like Gokul have historically offered higher rates. However, the recent reduction has brought their rates closer to the government's baseline, frustrating farmers who have long campaigned for better prices.

This decision has been particularly disheartening as farmers had been agitating for a price hike to Rs 40 per litre. Despite their demands, the current purchase price falls far short of their expectations, leaving them struggling to cover rising costs of production. A subsidy of Rs 5 per litre offered by the government was meant to cushion the impact, but the price cut has eroded this benefit, compounding their difficulties.

Adding to farmers' woes is the widening gap between milk production costs and market rates for dairy products such as milk powder and butter. This imbalance highlights the challenges faced by producers, who feel the pinch of reduced purchasing prices while market products remain profitable for dairy unions.

In addition to the milk price reduction, farmers are also grappling with increased operational costs due to a spike in CNG prices. Mahanagar Gas Limited recently raised the cost of CNG by Rs 2 per kilogram, pushing it to Rs 77 per kilogram in Mumbai. This rise affects transportation and logistics costs, further straining farmers' budgets.

The timing of these decisions - immediately after the elections - has sparked criticism from farmers, who view this as an unexpected and unfair setback. As milk producers face mounting challenges, the need for fairer policies to support the dairy sector has become more urgent than ever.