With the criticism growing of the government’s decision to increase milk price, the demand for autonomy in pricing is also on the rise.
“Please leave the task of determining prices, procurement and retail to cooperative dairy institutions,” say K.A. Sengottuvel, president of the Tamil Nadu Milk Producers’ Welfare Association, and S.R. Rajagopal, patron of the Coimbatore District Milk Producers’ Welfare Association. By doing so, the government can avoid criticism for price rise.
Cost and demandThe cost of milk production and the level of demand vary from district to district, and depending upon the situation in their areas, the District Cooperative Milk Producers’ Unions can fix the prices, they say. In support of their stand, the two leaders of the dairy farmers cite the case of Gujarat, considered number one in milk production with 85 lakh litres per day (LLPD).
Asked how autonomy will work in a district such as Chennai which does not produce milk, Mr. Sengottuvel says the Tamil Nadu Cooperative Milk Producers’ Federation (Aavin) can coordinate with district unions willing to supply milk to Chennai and come up with a pricing scheme.
Increase in productionMr. Rajagopal says the demand of big cities and towns can be met through a substantial increase in production. Mr. Sengottuvel refers to the Karnataka government’s policy to give dairy farmers incentive. At present, Rs. 4 a litre is being given. This policy has helped to drive up the procurement in recent years, making the State number two in procurement with 55 lakh litres a day.
