To ensure dairy farmers are not short-changed by wholesale buyers, the Maharashtra government is working on a legislation to fix a minimum support price (MSP) for milk. Once formalized, the MSP norm will have to be followed by even private dairies, which account for 60% of the milk procurement in the state.
At present, the procurement rates fixed by the government are only for state-run and cooperative dairies. Over the years, the state-owned and -run dairies have systematically reduced procurement, and now they buy 0.5% of the total milk, while cooperatives control 39.5% of the market.
"There are private brands selling cow milk for Rs 90 per litre but the farmer gets Rs 17-18 per litre. We cannot tell the brands at what rate they should sell that is their business model. But we can regulate the rates the farmer gets," Mahadev Jankar, minister for dairy development, animal husbandry and fisheries development, told TOI. "The Act will allow the state to fix an MSP.
The MSP will be finalized keeping in mind the 70:30 profit-sharing ratio on the lines of the sugarcane industry where 70% is for the farmer and 30% for the milk processor and middlemen," he added. The bill is likely to be tabled in the state legislature in December.
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