To help milk farmers, Maharashtra government to give Rs 5 subsidy to co-ops

MUMBAI: Maharashtra’s dairy farmers called off their four-day-long strike on Thursday night after the state government directed milk cooperatives to pay a procurement price of Rs 25 per litre of cow’s milk, up from the prevailing rate of Rs 17-Rs19—still less than the government fixed rate of Rs 27.
To ensure that the increase in procurement rate doesn’t have a cascading effect on consumers, the government will give Rs 5 subsidy per litre to the cooperatives.
Shetkari Swabhimani Sangathana (SSS) leader Raju Shetti, who led the strike, welcomed the government’s decision. “We wanted for farmers to get more price for their produce. We have achieved our goal,” Shetti said late Thursday after meeting chief minister Devendra Fadnavis in Nagpur. He also urged the government to ignore farmers’ violence.
The agitation had caused a visible shortage of milk across Mumbai on Thursday. Amul supplies fell short in Parel, Mulund and Kandeshwar near Panvel. Gokul was not available in Jacob Circle. Thote Dairy which procures cow and buffalo milk from Sangli had to roll down shutters at all its three Mumbai branches.
Observers say the scheme is difficult to implement and also does not include all farmers. This is only applicable to cooperatives, which account for just 40% of total procurement. The government has no control over the rates that private dairies pay.
The farmers, who launched the strike on Sunday midnight, had demanded a Rs 5 per litre direct subsidy but the government said it was not doable as there is no way to keep track of who is receiving this subsidy.
“We are still giving it to farmers, but through cooperatives. This will make tracking easier and will also compel cooperatives to give the decided rate of Rs 25,” said an official.
“By extending the subsidy to co-operatives the government will have to bear a burden of Rs 75 crore per month," dairy development minister Mahadev Jankar said in the assembly. He said this will be implemented from July 21 and for three months. After a review of the price of the skimmed milk powder in the international market, the state will decide whether to continue the grant or not. Jankar also said the government would not pay the subsidy to those who do not procure milk at Rs 25 per litre.
(Inputs by Bella Jaisinghani)