Lok Sabha Question No. 2637 (UNSTARRED), answered on 2019-07-09
Subject: Sale of Milk by Cooperatives
Ministry: FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
Asked by: Ram Kripal Yadav, Sudhakar Tukaram Shrangre, Devji Mansingram Patel

## GOVERNMENT OF INDIA MINISTRY OF FISHERIES, ANIMAL HUSBANDRY AND DAIRYING DEPARTMENT OF ANIMAL HUSBANDRY AND DAIRYING LOK SABHA

UNSTARRED QUESTION NO.2637 TO BE ANSWERED ON 09 th  JULY, 2019

## SALE OF MILK BY COOPERATIVES

2637. SHRI RAM KRIPAL YADAV: SHRI SUDHAKAR TUKARAM SHRANGARE: SHRI DEVJI  PATEL:

Will the Minister of FISHERIES, ANIMAL HUSBANDRY AND DAIRYING मत्स्यपालन , पशुपालन और डेयरी मंत्री be pleased to state:

- (a) whether the cooperatives sell milk in the market to the consumers at the rate of 50-55 rupees per litre whereas they purchase milk at the rate of merely 25-30 rupees per litre from the farmers and livestock rearers in the country including the States of Bihar, Maharashtra and Rajasthan who make their important contribution to the market and dairy sector;
- (b) if so, the details of the action plan being formulated by the Government in view of the same;
- (c) whether the dairy farmers are gradually shifting away from this business as daily cost of feeding of cows and buffaloes being higher and they are not getting remunerative price for milk;
- (d) if  so,  whether  the  Government  proposes  to  provide  minimum  support  price  of  milk  to  ensure remunerative price for milk and milk products to the farmers; and
- (e) if so, the details thereof

## ANSWER

## THE MINISTER OF STATE FOR FISHERIES, ANIMAL HUSBANDRY AND DAIRYING (DR.  SANJEEV KUMAR BALYAN)

- (a) &  (b)  The  price  of  milk  is  paid  based  on  the  fat  and  SNF  content  in  the  milk.  The  Cooperative Milk Union  sell full cream milk (6% fat and 9% solid not fat) to the consumers at the rate of Rs 48 to 56 per litre and pay Rs 29 to 39 per litre for milk   (6% fat and 9% solid not fat) to the farmers.  Most  of  the  dairy  cooperatives  pay  to  their  primary  producers  the  maximum  share  of  the consumer rupee (about 60-80 per cent) which is highest in the world. Further member farmers also receive annual bonuses plus various input services like veterinary services, Artificial Insemination (AI), cattle feed at subsidized rates etc and around the year market access by the cooperatives.

(c) The  farmer  members  of  dairy  cooperatives  have  increased  from  15.84  lakh  in  2015-16  to 16.57 lakh in 2017-18. The milk production in the country has increased from 155.49 million tonnes in 2015-16 to 176.34 million tonnes in 2017-18. As per the National Accounts Statistics 2018, the value output of milk group has increased from Rs 560777 Crore in 2015-16 to Rs 614387 Crore in 2016-17.  Hence  it  is  not  correct  to  say  that  dairy  farmers  are  gradually  shifting  away  from  this business  as  daily  cost  of  feeding  of  cows  and  buffaloes  being  higher  and  they  are  not  getting remunerative price for milk, although there may be regional variations.

(d) &  (e)  Government  does  not  control  prices  of  milk.  This  department  does  not  have  any proposal  to  fix  MSP  for  milk  in  the  country.  Milk  is  a  highly  perishable  product  and  prices  are decided by the Cooperative and Private dairies based on cost of production and demand.

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