In the highest hike in its history, Surat District Co-operative Milk Producers’ Union Ltd, commonly known as SUMUL dairy, Tuesday increased the purchase price of per kilo fat of cattle milk (both cow and buffalo) from dairy farmers of Surat and Tapi districts by Rs 30.
As a result, farmers will get Rs 780 per kilo fat of cow milk compared to Rs 750 previously and Rs 810 per kilo fat of buffalo milk as against Rs 780 earlier.
Sources said the decision was taken during the general meeting of the board of directors of Sumul Dairy Monday. The increase has been effective Tuesday.
“It (the current hike) is the highest in history. Ours is a cooperative society, so we share profits with the milk producers,” said Jayesh Patel, senior director of Sumul Dairy.
This is the first time SUMUL has raised the purchase price of cattle milk this year. Last year, the prices were hiked three times.
“The milk producers have been facing financial burden due to rise in the cattle feed prices, transportation and other expenses. So, we have decided to increase the purchase price of per kilo fat from milk producers,” said SUMUL Dairy chairman Mansinh Patel.
At the same time, the purchase price hike is likely to translate into a rise in milk prices for consumers in the coming days.
Sumul Dairy purchases around 14 lakh litres of milk daily from around 2.5 lakh registered milk producers of Surat and Tapi districts with the payment per day amounting to Rs 8 crore.
The dairy authorities have set up 1,200 mandlis in different talukas across Surat and Tapi districts to collect milk from the milk producers.
