The milk producers of Mysuru district are disappointed with the Mysuru milk union or Mymul for progressively slashing the procurement price of milk over the last six months.
A meeting of cattle farmers’ representatives and management of Mymul, also known as Mysuru District Co-operative Milk Producers’ Societies Union Ltd., on Tuesday remained deadlocked with the latter citing “difficult financial situation” arising out of a mounting stockpile of milk powder and butter.
Pointing out that milk production dips during summer and increases during rainy season, Mymul officials said milk production in Mysuru went up after summer forcing the union to convert large quantities of unsold milk into milk powder and butter.
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Milk production by the more than 80,000 cattle farmers in the district crossed the 9 lakh mark post-summer, during June-July this year. Presently, Mymul is procuring more than 8 lakh litres of milk every day.
“We are able to sell barely around 3 lakh litres of milk every day in the retail market. The rest has to be converted into other products. We are now laden with more than 3,600 tonnes of milk powder and 700 tonnes of butter,” Managing Director of Mymul K. Shivalinge Gowda told The Hindu .
Farmers’ leader Kurubur Shanthakumar, who led a delegation of cattle farmers to the meeting with Mymul representatives on Tuesday, claimed that milk producers, who were receiving about ₹30 per litre till May this year, were now being paid only ₹22 to ₹23. Procurement price varies from one producer to another on the basis of fat and solid not fat (SNF) content.
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The reduction in procurement price by around ₹7 for every litre over the last few months has hit cattle farmers hard, Mr. Shanthakumar claimed.
Mr. Gowda, however, said procurement price of milk was also seasonal. “Farmers were receiving barely ₹19 per litre in October last year. But by March this year, they were receiving an average of ₹30 per litre,” he said.
Mymul was making profits during the period as there was a good demand for bulk milk from neighbouring Maharashtra, Andhra Pradesh, Kerala and Tamil Nadu, which were suffering from a slump in milk production on account of severe drought. After the recent rain, the demand for milk from the neighbouring States had dipped.
Milk powder
Milk powder also enjoyed a good market during the period. “We were able to sell milk powder for a price ranging from ₹260 to ₹270 for every kg. Now, we are unable to sell it for even ₹160 to ₹170 per kg when our production cost itself is around ₹230 per kg,” Mr. Gowda said.
Mymul was able to share the profits with the milk producers when the going was good, he added.
Officials of Mymul expressed hope of being able to increase the procurement price in the coming months when its financial situation stabilises with increased demand.
They also said there was no proposal to increase the retail price of milk and milk products before them.