Maharashtra Milk Price Slump: Farmers Fight Back

Dairy farmers in Western Maharashtra have been hit hard after Gokul Milk and other major unions, including Warana and Rajarambapu, reduced the purchase price of cow's milk by Rs 3 per litre, according to a Mid-day report. This decision came just after the election results, leaving many farmers in financial difficulty. Previously, Gokul paid Rs 33 per litre for cow's milk, but the price has now dropped to Rs 30 per litre.

This significant reduction has put pressure on milk producers, especially as the state government has set a standard price of Rs 28 per litre for milk with 3.5 per cent fat and 8.5 per cent SNF, effective from October 2024. While unions like Gokul usually offered better rates, this price cut has brought their offer closer to the government's baseline, leaving farmers frustrated. Farmers had been pushing for a price hike to Rs 40 per litre to cope with rising production costs. Instead, the reduced price leaves them struggling to break even, despite a Rs 5 per litre subsidy from the government, which has now been largely undermined.

The situation is worsened by the growing gap between the cost of milk production and the market rates for dairy products like milk powder and butter. While milk prices have fallen, these products remain profitable for dairy unions, creating further financial strain for producers.

On top of this, farmers are dealing with increased operational costs due to a rise in CNG prices. Mahanagar Gas Limited recently increased the price of CNG by Rs 2 per kilogram, reaching Rs 77 per kilogram in Mumbai. This has pushed up transportation costs, adding more pressure on farmers. The timing of these changes, coming right after the elections, has sparked outrage among farmers, who see it as an unfair setback. With challenges mounting, there is an urgent need for policies that support the dairy sector and ensure fair prices for farmers.