Milk prices to rise by 10%

Written By DNA Web Team | Updated:

Currently, one litre of pasteurised cow milk is sold at Rs24 and the richer variety between Rs29 and Rs35. Union agriculture minister Sharad Pawar on Wednesday said that a hike in milk prices was imminent.

Wheat, pulses, sugar and now, milk. It’s time to rejig your household budget again as bad news on the prices front keep streaming in. Milk prices in the city are set for a nearly 10% hike in a couple of months from now.

Currently, one litre of pasteurised cow milk is sold at Rs24 and the richer variety between Rs29 and Rs35. Union agriculture minister Sharad Pawar on Wednesday said that a hike in milk prices was imminent. While he was referring to the milk availability situation in north India, consumers in Maharashtra have to brace for a hike as procurement is poor in the state too.

“We are facing insufficient availability of milk, especially in northern India. Today there is a demand that we should hike the prices,” he said at a state animal husbandry and dairy ministers’ conference. “I do not know whether the states will be able to procure [milk] to meet the demand without a price hike.”

Milk producers in the state attribute the increase to a slump in milk production, particularly in rural India. They say this is the first time that milk production in Maharashtra is in shortage during the “plus period”, usually the cooler months between November and March.

“The monsoons have been irregular for the last couple of years,” said Vinayak Patal, president, Mahananda Dairy. He said that the prices of cattle food, comprising grass, jowar, corn and other essentials have increased in the last couple of months. “This has resulted in farmers not feeding the cattle well, which is affecting milk production.”

Milk distributors said milk production across the country has been low. “A price hike is inevitable,’’ said T Raju, a milk distributor in central Mumbai. The hike is likely to be in the range of Rs2, which is about 10% of the existing prices, distributors said.

Apart from milk, the prices of dairy products such as butter and cheese have also gone up in the last six months. Unfortunately, they are likely to go up even further.

While Pawar, already under attack from his political opponents over surging prices of sugar, dismissed suggestions that he was for an immediate hike in milk prices, political opponents have already pounced on the statement. Uttar Pradesh chief minister Mayawati termed his statement “irresponsible’’ and sought his removal from the agriculture ministry.

“Such irresponsible statements have only given an opportunity to hoarders to jack up prices while the people are suffering due to shortages and steep prices,” she said.

Pawar’s statement came on a day the BJP took its attack on rising prices to prime minister Manmohan Singh. The BJP delegation, which met the prime minister at his residence, asked the government to demonstrate a willingness to control prices. It was headed by former home minister LK Advani and included new party president Nitin Gadkari among other senior leaders.

“The need of the hour is for the government to have a comprehensive food pricing and management policy,” said the BJP memorandum.