Pune Milk Price Raised by Rs 1 per Litre

The Pune District Cooperative Milk Producers’ Union in Maharashtra has raised the procurement price of cow and buffalo milk by Rs 1 per litre. This decision comes just before Ganeshotsav and will take effect from Friday.

The revised rates will benefit dairy farmers who supply milk to district cooperative collection centres across Pune, as they will receive Rs 1 more for every litre of milk.

The union attributed its decision to rising expenses for cattle fodder, animal feed, and transportation, which have squeezed farmers’ earnings in recent months. The increase applies only to the amount paid to farmers for raw milk.

However, consumers will continue paying the existing retail price, as Katraj Dairy has decided not to pass on the increase. This means that packet-milk prices for households and other customers will remain unchanged.

The reason for this is that procurement and retail prices are different. The procurement price is what a dairy company or cooperative pays farmers when buying raw milk, while the retail price is what customers pay when purchasing packaged milk from shops.

Katraj Dairy will absorb the additional Rs 1 per litre instead of transferring the burden to buyers, protecting household budgets ahead of the festive period.

Following the revision, the procurement price of cow milk containing 3.5% fat and 8.5% solids-not-fat, or SNF, will rise from Rs 39.80 to Rs 40.80 per litre.

The decision comes at a time when milk and khoya demand typically increases by 35% to 40% during Ganeshotsav. The Pune decision also follows the Mumbai Milk Producers’ Association's recent announcement of a steep increase of up to Rs 9 per litre in buffalo-milk prices.

Katraj Dairy’s move offers higher returns to farmers while shielding customers from an immediate price rise during the festival season. This decision is expected to provide relief to dairy farmers without affecting consumers.

The move is seen as a positive step for dairy farmers, who have been facing rising expenses and squeezed earnings. It will also help to ensure a stable supply of milk during the festive season.

In the context of the larger dairy industry, the decision highlights the challenges faced by dairy farmers and the need for supportive pricing mechanisms. The Pune District Cooperative Milk Producers’ Union's decision is a step in this direction, aiming to balance the interests of farmers and consumers.

Overall, the decision to raise the procurement price of milk by Rs 1 per litre is a significant development for dairy farmers in Pune, and its impact will be closely watched in the coming days.

The decision is also significant for consumers, who will not have to bear the burden of increased milk prices during the festive season. This will help to keep household budgets in check, especially during a time when expenses tend to increase.

In conclusion, the Pune District Cooperative Milk Producers’ Union's decision to raise the procurement price of milk is a welcome move for dairy farmers, and its impact will be felt in the days to come. The decision to absorb the increase instead of passing it on to consumers is also a positive step, and it will help to ensure that the festive season remains joyful for all.