Kolhapur Gokul raises milk procurement price by Re 1/Litre for cow and buffalo farmers. India's biggest co-op launches Gokul Cheese and Gulab Jamun amid management efficiency debate.
Gokul Hikes Milk Price, Launches Cheese Stability for Farmers

Kolhapur’s Biggest Milk Cooperative Boosts Cow and Buffalo Procurement by Re 1/Litre, as Minister Mushrif Praises Frugal Management.

The Kolhapur Zilla Sahakari Dudh Utpadak Sangh Limited, widely known by its market brand Gokul, has delivered positive news to its dairy farmers by announcing a Re 1 per litre hike in the procurement price for both cow and buffalo milk. This significant announcement was made by the director body of the cooperative, which is recognized as Maharashtra state’s biggest milk cooperative, during a celebratory event held on Friday. The cooperative also provided a smaller increase, raising the commission given to milk societies by ten paise.

The price increase serves as a Diwali gift to the milk producers and is framed as a direct result of the cooperative’s efficient financial management. According to senior director Vishwas Patil, the decision was made possible by reducing management expenses by one rupee and increasing the cooperative’s profit this year. This latest hike follows a trend of increasing returns; Medical Education Minister Hasan Mushrif noted that over the previous four and a half years, the purchase price for cow milk had been increased by eight rupees and buffalo milk by fifteen rupees.

Beyond the procurement price, Gokul is strategically expanding its product portfolio, signaling an increased focus on value-added dairy products. The same event saw the official launch of two new items: Gokul Cheese and Gulab Jamun. The cooperative also inaugurated the sale of pregnant animal feed manufactured by its Mahalaxmi Factory. These diversifications aim to capture greater market share and generate additional revenue streams to support the cooperative’s financial health.

The financial maneuverings of Gokul have not been without controversy. Director Patil stated that the decision to reduce debentures—which have been in operation for 32 years—was necessary to acquire space for the cooperative in key urban markets, specifically Mumbai and Pune. However, this move spurred protest. MLC Satej Patil and Minister Mushrif criticized former director Mahadevrao Mahadik and his daughter-in-law, Shoumika Mahadik, for leading a ‘Jawab Do’ protest over the debenture reduction, framing the cooperative as belonging to the farmers, not any one “trader.”

While the price hike immediately benefits the milk producers, dairy experts have commented that the increase is unlikely to have an immediate impact on the final retail selling price for the end consumer. However, based on typical market dynamics, these experts project that a subsequent rise in the consumer price of milk is “very likely in the next one to two months.” This strategic move by Gokul secures a better return for farmers while fueling investment in new products and market expansion.

Source: Find the complete news report on Gokul’s announcements at The Times of India.

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