Daily milk collection at Indore Cooperative Dugdh Sangh has touched five-year high, leaving the federation baffled with towering stocks of unsold butter and skimmed milk powder made from converting extra milk. Per day collection of milk in Indore is almost 40 per cent more than the total demand.
Milk collection at Indore Cooperative Dugdh Sangh that sells packaged milk has jumped to a five year high of around 4 lakh liter due to a spike in supplies from farmers of Indore and nearby areas.
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The federation has a mounting stock of around 1,500 tonne white butter and 1,250 tonne skimmed milk powder.
Dr RK Doorwar, CEO, Indore Cooperative Dugdh Sangh said, “Milk collection is huge and this is leaving a high quantity of surplus milk. Daily milk collection has touched five year high in Indore. This scenario is across the country and very disturbing for the dairy industry. We are converting surplus milk into skimmed milk powder and butter but there is no market to sell these by-products because high supplies have dampened the demand of byproducts much below the cost of production.”
According to the federation, the market price of skimmed milk powder is Rs 230 per kg as against Rs 285 per kg cost of production and butter is Rs 310 per kg as against Rs 370 per kg.
“Every centre is surplus with milk and by-products. No one wants to purchase milk from other centres and the focus is to consume their own supplies. We are not able to market such high quality skimmed milk powder and butter due to poor market prices.” said Doorwar. The federation is hoping for some improvement in demand for milk and its byproducts starting April amid weddings and summer months. Doorwar said the federation has urged the state government to extend help to the milk federation by purchasing skimmed milk powder for mid-day meal schemes.
All India Kisan Sabha supported milk producers in their demands for a minimum support price of Rs 50 per litre and the release of Rs 150 crore milk subsidy withheld by the Rajasthan government for 7 months.
