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6,000 farmers to exit Milkfed over poor pricing
Jangveer Singh/TNS

Chandigarh, November 23
Punjab is staring at a milk crisis. A whopping 6,000 progressive dairy farmers who supply 8 lakh litres milk every day to the Punjab State Cooperative Milk Producers’ Federation (Milkfed) are set to exit the state cooperative, citing poor procurement price for their produce. The cooperative on its part says it is saddled with 1,000 tonnes of unsold stock worth Rs 105 crore and cannot procure milk at higher rates.

The crisis, which has been simmering for nearly two years, has come out in the open after Milkfed reduced milk prices this winter. Most of the affected are small farmers who took to dairying under a government initiative by taking loans ranging between Rs 20 lakh and Rs 40 lakh to start their ventures. Now, they are finding it difficult to repay the loans.

Progressive Dairy Farmers Association (PDFA) president Daljit Singh Sadarpura said Milkfed procures cow milk at Rs 20.50 per litre and commercial dairy farmers were finding it a losing proposition to supply milk at this price. “From this week, Milkfed has also discontinued incentive bonus of Rs 1 for commercial dairy farmers. So, we have decided to stop selling milk to Milkfed from January. Instead, we will purchase its own milk plant soon and market our milk,” said Sadarpura.

Sadarpura said Milkfed and consumers would feel the pinch in summer. “The least Milkfed could have done was support commercial dairy farmers till the crisis of surplus blows away,” he said. PDFA members supply 3.5 lakh litres milk to Milkfed alone every day, besides other organisations.

The PDFA chief said Punjab Chief Minister Parkash Singh Badal had failed to come to the aid of dairy farmers. “Karnataka and Maharashtra offer an incentive of Rs 2 a litre to its farmers beyond the price offered by state cooperatives,” he said.

Milkfed managing director Dr BS Sidhu said the cooperative was selling milk powder and other stocks at prices less than production cost due to a depressed market. Prices of milk products are currently low because of a one-year ban on exports that resulted in a nation-level stockpile of milk powder exceeding 1 lakh metric tonne. Though the ban has been lifted, international prices are down and exports are sluggish. He said the cooperative had in its stocks 4,000 tonnes of skimmed milk worth Rs 60 crore, besides ghee (600 tonnes), white butter (400 tonnes) and whole milk powder (300 tonnes).This situation could continue for another six months, he added.

Dairy farmers feel betrayed by both Milkfed and the government. Sukhdev Singh of Baroli, Mohali, said: “The cooperative purchases milk at Rs 20.50 per litre and sells it for Rs 34 a litre. Feed alone costs Rs 21 per kg as against Rs 14 per kg last year. How will we survive?”