Milk Price Dynamics and the Plight of Indian Dairy Farmers
Source: dairynews.today
A parliamentary panel highlights lower milk inflation rates compared to general food inflation, urging for an investigation into price determination mechanisms.
A recent report by India's Standing Committee on Agriculture, Animal Husbandry, and Food Processing has drawn attention to the growing disparity between milk price increases and overall food inflation. The average milk price rose fr om Rs 30 in 2014 to Rs 45.98 in December 2024, yet milk inflation was recorded at just 1.6% compared to 6% in general food items. The committee suggested that the current pricing fails to benefit dairy farmers adequately, whose income depends significantly on milk sales.
The report urged the government to scrutinize the milk procurement pricing mechanism to ensure farmers receive fair compensation. This involves a review of cooperatives and private dairies' roles, wh ere 70-80% of consumer retail prices are claimed to be returned to farmers in the cooperative sector. Despite this, the difference in retail and procurement pricing includes various overhead costs, such as transportation and packaging.
Concerns regarding milk adulteration were also raised, which affects both consumer health and farmer incomes. The panel recommended strengthening adulteration law enforcement and developing home testing tools for milk purity.
Furthermore, the suspension of the Delhi Milk Scheme's (DMS) license by the food regulator FSSAI was questioned. The committee called for a detailed explanation from the Department of Animal Husbandry & Dairying on this decision. It emphasized the need for actions to ensure DMS compliance and highlighted its brand significance in Delhi's retail market.
The report urged the government to scrutinize the milk procurement pricing mechanism to ensure farmers receive fair compensation. This involves a review of cooperatives and private dairies' roles, wh ere 70-80% of consumer retail prices are claimed to be returned to farmers in the cooperative sector. Despite this, the difference in retail and procurement pricing includes various overhead costs, such as transportation and packaging.
Concerns regarding milk adulteration were also raised, which affects both consumer health and farmer incomes. The panel recommended strengthening adulteration law enforcement and developing home testing tools for milk purity.
Furthermore, the suspension of the Delhi Milk Scheme's (DMS) license by the food regulator FSSAI was questioned. The committee called for a detailed explanation from the Department of Animal Husbandry & Dairying on this decision. It emphasized the need for actions to ensure DMS compliance and highlighted its brand significance in Delhi's retail market.
