Tuesday, November 7, 2000,
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Milkfed to cut procurement price
From Pushpesh Kumar

BATHINDA, Nov 6 — As it is, paddy growers are paying the price for higher yields in the state, but even those in allied sectors like dairy farming, honey bee cultivation, etc, are facing a financial crunch.

A couple of months ago, the news of imported milk sent shock waves through the farming community, but an assurance by the state government pacified them temporarily. But the latest news of reduction in milk procurement prices by Milkfed has once again caused anxiety to them.

According to informed sources, Milkfed has reportedly decided to reduce the procurement price of milk, which is purchased through various cooperative milk-producing societies. The procurement price of milk, which at present is Rs 1.72 per fat unit/per kilogram, is ‘to be’ reduced to Rs 1.65 per fat unit/per kilogram. The reason being given for the move is that the milk plants in the state are running into losses.

Interestingly, milk procurement prices were increased in the past two years as the cost of inputs had gone up. However, now, despite an increase in prices of petroleum products and other overhead charges, Milkfed has decided to cut prices.

Mr Harnek Singh, District Vice-President, Bharti Kisan Union (Ekta), said in a written statement that instead of reducing the procurement prices, the authorities should look into the real causes of losses incurred by various milk plants. He added that the farmers had suffered losses in the paddy season and cotton too seems to be going the paddy way. And now the cut in milk procurement prices would add to their problems.

He said that at one time the country was facing a shortage of foodgrain, but now farmers were being ‘forced’ to commit suicides when they had produced bumper harvests. None of the governments in the recent past had been able to solve this problem or address the root cause of the problem, he alleged.

Mr Hazoor Singh, Managing Director of the Bathinda District Central Cooperative Milk Producers Union Limited, said that there was nothing new in the reduction of milk procurement prices after Divali. The procurement rates of the co-operative societies were still higher than those of private parties, he claimed.
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