Indore dugdh sangh urges govt to expand ambit of Rs 5 per litre incentive to all milk farmers

Indore: The association of dairy owners and milk suppliers have urged state govt to include all milk producing farmers within the purview of the incentive proclaimed by it to augment milk collection.
Announcing the state Budget FY 2024-25 on July 4, Madhya Pradesh finance minister Jagdish Devda had announced the CM Cooperative Milk Producers Promotion scheme, wherein the MP govt will provide Rs 5 per litre as an incentive above the market price to milk producing farmers and the incentive amount will be transferred directly to the farmers' bank accounts.
Indore Dugdh Vikreta Sangh president Bharat Mathurawala said, "The state govt has announced an incentive of Rs 5 per litre to milk farmers to bolster the dairy sector and encourage milk farmers. But, this incentive was extended only to milk producing committees associated with the MP State Cooperative Dairy Federation (MPCDF). We believe that this incentive should be granted to all milk producing farmers across the state to fortify the dairy sector".
MPCDF procures approximately 10.5 lakh litre of milk per day from farmers' cooperatives across all six milk unions in the state. Of the total collected milk, 7 lakh litre per day is sold as packaged milk. Indore Dugdh Vikreta Sangh collects around 12-12.5 lakh litre of milk per day and distributes it to households at their doorsteps.
The sangh has written to state govt urging it to consider expanding the scope of the incentive. It has mentioned that the high cost of rearing and diminishing margins were adversely affecting dairy farmers in the state.
Experts from the dairy industry opined that the incentive will further escalate milk collection, with cooperatives already grappling with surplus supplies.
"Milk collection in the region has remained stagnant for years because farmers are not exhibiting much interest in the dairy sector. The cost of operation in this sector is exorbitant, and margins have plummeted. The incentive could be a game-changer," said Mathurawala.
The disbursal of the proposed incentive is yet to commence by the state govt, officials said.