India raises retail milk prices by 2 rupees, citing demands made by industry body representing milk producers' unions in country

INDIA , November 25, 2013 () – Household budgets are set to be squeezed further. Even as vegetable prices continue to soar, the state government Friday issued directives for a Rs 2 hike in milk prices.

Milk cooperatives will now sell cow's milk at Rs 33 a litre in Mumbai and surrounding urban areas. Milk will be priced at Rs 32 a litre in rural areas.

Toned milk, too, will be available at the same revised rates. A litre of buffalo milk, which earlier cost Rs 40 a litre, will now come at Rs 42 a litre in urban pockets. In rural pockets, it will cost Rs 41.

A high-level government panel, headed by Principal Secretary (Dairy development) Anil Diggikar, took the decision in the wake of demands made by the Maharashtra Rajya Sahakari Dudh Mahasangh, Maryadit, an apex body representing milk producers' unions in the state.

The panel decided to hike milk procurement charges by Rs 1.50 for milk with standard fat.

The milk is procured from the milk unions and distributed to consumers.

The hike in milk production rates has been cited as a reason for increasing milk procurement and sale prices. The government has also revised the commission provided to milk cooperatives.

A senior state official said the revised rates would be applicable from Friday. With milk cooperatives raising rates, private dairies are expected to follow suit. The rates were previously revised nearly a year-and-a-half ago.

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