Punjab Govt Hikes Milk Procurement Prices By ₹55 Per Kg Fat, No Impact On Retail Prices

On May 21, the dairy farmers, under the banner of Progressive Dairy Farmers Association (PDFA), on held a massive protest at a state-owned milk plant in Mohali, seeking hike in milk procurement prices. They had demanded at least ₹100 per kg fat increase in the procurement price. Though the AAP government announced to increase Rs 20 per kg milk fat, the protesting farmers rejected it as inadequate, saying they want a hike of at least Rs 100 per kg. 

PDFA president Daljit Singh Sadarpura said the milk prices have not been increased in the past two years while their input prices, including feed prices, have almost doubled.

“The price of soybean has increased from Rs 3,200 per quintal a year ago to Rs 7,200 per quintal. Similarly, the prices of other items have also gone up which hit the dairy sector hard,” said Sadarpura. Though the protesting milk farmers ended their protest after the state government assured them to consider their demand.

Now the Punjab cooperation minister Harpal Singh Cheema, after meeting a delegation of dairy farmers in Chandigarh, took the decision to increase the milk procurement prices by ₹55 per kg fat for the dairy farmers. “This is the first time that such kind of financial assistance has been given by the Punjab government, more concrete steps would be taken for the benefit of milk producers and consumers in future also,” said Cheema.

He further added that the Punjab State Cooperative Milk Producers Federation Limited (Milkfed) has always been offering high milk purchase prices to the producers. With the latest hike, Milkfed managing director Kamaldeep Singh Sangha said, “the milk procurement prices have risen by ₹105 per kg fat in the last two-and-a-half months”. Meanwhile, minister Cheema also added, that the increase in milk procurement prices won’t have any impact on retail milk prices.

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