The rise in procurement price of milk, at best, is a bitter-sweet development, for suppliers to Aavin, which started implementing the new rates from Monday.
The government’s decision on increasing procurement cost in consonance with the rise in input costs, after a gap of five years, is indeed logical . But, the question is whether the benefit of the rise in procurement cost will be passed on wholly, milk producers wondered.
Though the procurement price has been raised by ₹4 to ₹32 per litre of cow milk, the milk producers do not get the entire amount. The procurement cost is reduced by a rupee or two per litre by Aavin citing lesser fat content. In effect, the benefit accruing to the suppliers from the latest rise in procurement cost will continue to be only marginal, S. M. Rajendran, former Chairman, Tiruchi Milk Producers' Union, said.
Lack of uniformity in the method of measurement of fat content has been a long-time concern across the jurisdiction of the Tiruchi union that also encompasses Karur, Ariyalur and Perambalur districts, accounting for an overall of nearly 900 milk producers' societies supplying 5.5 lakh litres every day, Mr. Rajendran said.
“The milk suppliers in our area find themselves at a disadvantage due to the absence of state-of-art machinery for measurement of fat content,” Thangavel, Secretary of Manapparai Milk Producers' Society, said. All chilling centres must be provided with state-of-art machinery in the interests of the suppliers, Mr. Thangavel emphasised. Official sources, however, denied any flaw in measurement of fat content, and reasoned out that the right price was not denied for suppliers of quality milk.
Though the procurement cost of buffalo milk has been increased by ₹6 to ₹41 per litre, it is of no use for the suppliers as the practice of rearing buffaloes is passé. “Buffaloes can be raised only in the vicinity of waterbodies. Many suppliers have sold their buffaloes over the years due to water scarcity”, Mr. Thangavel said.
Meanwhile, as the revised cost of Aavin milk sold through retail points also came into effect today, the sellers were at their wit's end, unable to convince a section of buyers who were unprepared for the hike.
Since a section of sellers had sold stocked packets at old rates before replenishment of stock in the morning, the buyers, it is learnt, had stood their ground and insisted on the old rate. The sellers had to struggle to convince their customers.
