While milk prices all over India have increased by Rs 3 on an average in the last one year, the procurement price of milk at the farm gate has barely moved up.

According to National Dairy Development Board (NDDB) figures, the procurement price for cow milk has increased by only 0.7% during the nine months from September 2006 to May 2007. From Rs 9.54 per litre in September 2006, the price increased to Rs 10.10 on April this year and then declined to Rs 9.61 in May.

However, procurement price for buffalo milk increased by 5.6% during the same period, from Rs 12.86 in September 2006 to Rs 13.58 on May 2007, mainly because buffalo milk is used to make SMP. Prices of cattle feed and other inputs have increased, making it more difficult for the farmers.

Recently, farmers in Erode, Tamil Nadu, staged a demonstration demanding an increase in procurement price of cow milk at least by Rs 3 and Rs 6 a litre for buffalo milk.

At present Metro Dairy, a dairy major in West Bengal, sells double toned milk at Rs 17 per litre, toned milk at Rs 18 and cow milk at Rs 19. According to the Union ministry of agriculture, the milk price in New Delhi has increased by 12.5% over the last year.

Source: Financial Express