Buffalo milk farmers likely to benefit by ₹3 per litre.
Farmers supplying buffalo milk to the Telangana State Dairy Development Co-operative Federation (TSDDCF) and sold under the Vijaya brand name are likely to get an additional ₹3 per litre soon.
As of now the TSDDCF pays ₹48 per litre to the dairy farmers and this is likely to be increased to ₹51. The market price for the end consumer, however, is not likely to be impacted and sold at the present rate.
However, the government plans to revise the payment to farmers supplying cow milk as it is the highest in the country compared to any other brand leading to huge losses to the TSDDCF. So the procurement price for cow milk is likely to be reduced by ₹2 to ₹3 from the present rate.
Officials said that the current price paid to farmers is ₹42.24 per litre, which is about ₹8 to ₹9 higher than what other private companies pay. Due to this the Federation is losing about ₹12 crore per month leading to delay in payments.
Milk production has increased across the country over the past year. With milk available at very low prices in the neighbouring States like Karnataka and Maharashtra, the price of milk has decreased significantly. Officials said that private dairies and some cooperative dairies are procuring milk from neighbouring states at ₹27 to ₹32 per litre and paying high commissions to increase sales in Telangana. This had a huge impact on Vijaya brand sales. Moreover, some dairies are illegally selling under the name of Vijaya brand leading to further decrease in sales. As on today, Vijaya brand sells only about 2.8 lakh litres everyday.
The low sales and high procurement rates is impacting the payments made to the farmers on time apart from the losses to the tune of ₹12 crore a month.
In this backdrop, the TSDDCF management held a meeting with the dairy farmers where three proposals were discussed. It was decided to request the government to clear the old dues of about ₹50 crore. It was also decided to pay milk bills on the 5th and 20th of every month to the farmers, thus convincing the farmers for the price revision.
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