Milk price up by 60% in 5 years (ToI)

TNN | Jul 7, 2014, 12.46 AM ISTPONDA: With small hikes on different occasions, the price of Goa Dairy's two major milk variants has gone up by almost 60 per cent over the last five years. Irked with the regular price hike, several consumers have demanded that the government take over Goa Dairy to stabilize prices.

"We understand if large companies like Mother Dairy, Kwality or other private companies raise milk prices as they look for profitability. However, Goa Dairy is a cooperative union and it must think about the consumers' needs. They can even seek help from government for sustainability," said Madan Borkar, a resident of Borim.

Goa Dairy has hiked prices of two major milk variants milk supplied by it by Rs 2-3 a litre from Tuesday. With the new tariff, the rates of Goa Dairy's full cream milk is Rs 48 per litre and standardized milk is Rs 40 per litre.

Rates of the full cream and standardized milk variants used to be Rs 28 and Rs 23 per litre respectively five years ago on July 1, 2009.

Consumers claim that the rise is unnecessary and Goa Dairy simply follows milk majors like Amul, Mother Dairy, Kwality, etc. Alleging that Goa Dairy has surplus staff, Pramod Naik, a resident of Marcela said the dairy raises milk prices to meet such unnecessary expenses. Naik added that the dairy should reduce the number of employees instead of hiking prices at regular intervals.

Goa Dairy's managing director N C Sawant has admitted that the recent price hike was due to declining profitability. He attributed the hike in prices to many factors. Transportation costs and diesel prices have gone up. There has been an increase of 15% in the price of cattle feed since September 2012, he said. Sawant said that benefits from the recent price hike will be passed on to farmers.

Endorsing the claims of Sawant, cooperation minister Pandurang 'Deepak' Dhavalikar said that the dairy is an autonomous body and the government cannot interfere in its business unless the dairy is involved in some wrong doings.

He also recalled the state government's statements about reducing milk price. "Chief Minister Manohar Parrikar had appealed to the dairy to reduce milk prices, but the dairy has turned a Nelson's eye to the appeal and on the contrary has raised prices," Naik said. During an assembly session in October 9, 2013, while responding to a starred question on the Kamdhenu scheme posed by Bicholim independent MLA Naresh Sawal, chief minister Manohar Parrikar had said that the Goa Dairy should lower the price of milk by a rupee or two to attract higher sales and thereby aim at a higher turnover.

Goa Dairy used to sell milk to neighbouring states. Though the dairy had claimed that they were selling milk to avoid wastage as the dairy has no much storage capacity, the practice was criticized and Parrikar had warned them that the government would take over Goa Dairy if it fails to reduce the price of milk to generate higher sales by the next legislative assembly.

Parrikar, who is also the minister for agriculture hinted at replacing Goa Dairy with another dairy in the state if it fails to provide better quality milk at a cheaper rate. "The government is ready to take over the dairy and improve the quality. We can also replace it, if required. There are various options available," he had said.

The government can also set up chilling units in the towns from which fresh and better quality milk at lower price can be made available to people, Parrikar added.http://timesofindia.indiatimes.com/city/goa/Milk-price-up-by-60-in-5-years/articleshow/37921394.cms