Katraj Announces Price Reduction on Double Toned Milk to Address Market Challenges

In an official statement released on Thursday, the cooperative announced a price reduction of Rs 2 per litre, effective from December 1. Consequently, 1-litre milk pouches will now be available to consumers at an attractive price of Rs 53. Additionally, the price of 250 gm packs of extra protein milk has been adjusted to Rs 12.

This move by Katraj comes amidst recent protests by dairy farmers in Maharashtra who have expressed discontent over the low procurement price for milk offered by dairies. Currently, milk with 3.5 per cent fat and 8.5 per cent Solid-Not-Fat (SNF) is being procured at Rs 28-39 per litre, a significant increase from the previous rates.

Dairy farmers have been urging government intervention to secure fair prices for their produce, stating that the current rates are unsustainable for them to continue their operations. Recent demonstrations by dairy farmers in Pune and Ahmednagar outside dairy offices and tehsildars' offices underscore the urgency of the situation.

Dairies, in response, cite challenges related to excess milk production and low demand for dairy-based products. Cooperative dairies are grappling with the issue by converting excess milk into skimmed milk powder. However, the low prices of this commodity in the international market present a hindrance to exporting it.

In light of these challenges, Katraj's decision to reduce consumer prices is viewed as a strategic measure to pass on benefits to end consumers. Moreover, the dairy aims to stimulate sales and alleviate the burden of excess milk collection by adjusting prices in response to the evolving market dynamics.