Feb 17, 2020
The Panel is needed to advise the government on certain intricacies of the sector and tactics and it intends to take reins of the situation and advice productive steps, which will help both farmers and consumers at large.
With an estimated daily production of 2 crore liters, organized dairies in Maharashtra account for nearly 50 per cent of the daily milk collection.
Recently through Government Resolution (GR), the Maharashtra government announced about the setting up of a counselling body for the dairy sector. Encompassing the representatives from both cooperative and private dairies, this assembly is organized to meet once every two months to discuss subjects and issues, and also advise the government on the corrective steps that need to be taken from time to time.
Partha Sarathi Biswas explained the formulation of panel which is needed for better coordination between the government and the dairy sector.
Not a unified unit
Dairy sector largely stays unorganized with a bay between private and co-op dairies. Showing an estimated daily production of 2 crore litres of milk, organized dairies in Maharashtra claims for nearly 50% of the daily milk collection. Of this 50 %, around 60% is collected by private dairies like Parag Dairy, Lactalis Prabhat, Indapur Milk & Milk Products Ltd (under brand name Sonai) while the rest is collected by co-operative unions like Pune District Co-op Milk Producers Union (Katraj brand); Kolhapur District Co-op Milk Producers Union (Gokul brand), and Sangamner Taluka Co-op Milk Producers Union (by the name of Rajhans Brand).
The state top milk marketing federation ‘Mahanad’, is almost non-operational with little or no milk collection or sales. Unlike Karnataka and Gujarat, Maharashtra’s dairy sector refrains to give a clear picture of unison with dairies contending for their share of procurement and retail market. Currently, this competition proves to be unwholesome, leading to a tug-of-war of prices which has profited farmers but even they have been knocked out by price alterations.
During large-scale production, the most affect dairies are private ones. Private dairies mostly produce skimmed milk powder (SMP) and white butter, and thus are more susceptible to price variations. Co-operative dairies, which are under the scope of the influence of dairy commissioner, are unable to apply price corrections, which gnaws their price bottom line.
The scattered decree has been observed in the dairy industry finding itself at an imbalance crossroads while placing its demands before the government on major policy issues. Dairy sector representatives, have often complained that their opinions and expressions often goes unheard in many forums.
The Need of the Committee
At the Nagpur session of the state Legislature, dairy leaders had urged the government to understand the need for better coordination with the sector. It was agreed that a committee consisting of the dairy industry and officials from the National Dairy Development Board (NDDB) will be formed to help act as a bridge between Government and the dairy sector. The 15-member committee has 5 representatives from the co-operative sector and 4 from the private sector,while the rest are government officials and representatives from NDDB.
Dairies welcomes the move
Dairy owners spanning the state have welcomed the move, stating that this was a much-needed step to help formulate policies for the sector. According to the committee, the government officials had little procedure to collect information about the dairy issues. Maharashtra government is commended with fixing farmgate procurement price of milk. The dairy development commissioner has the sole power to dismiss the board of directors of co-operative dairies who fail to implement the same.
In the past, many co-operative dairies had moved the Bombay High Court to stop such processes.
Dairies have long been demanding that the government help them get over the recurring nature of the ‘flush and lean’ phases of their businesses. Just like in Karnataka, there is also a strong demand to implement a direct production incentive for dairy farmers in Maharashtra to protect them from price differences.
Suggestions by Dairy industry’s – to put up an alternate mechanism to absorb excess milk by introducing the same in mid-day meals in organizations and institutes, which has not found much pull in government circles. The sector hopes it will be able to push for policy reforms and various other measures such as taking back used pouches of plastic recycling units are expected to be taken up by the committee for earlier implementation.