If imports are allowed, milk procurement prices are likely to drop by Rs 7-8 per litre
BJP MLA from Shehra, Jetha Bharvad has warned that import of Skimmed Milk Powder (SMP) will reduce milk prices in the country and consequently reduce the procurement cost of milk affecting crores of farmers in the country. Bharvad is also vice-chairman of Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets milk products under Amul brand.
"It has come to our notice that multinational corporations from countries like New Zealand, Australia and other countries of Europe are trying to sell SMP in India through provisions of Free Trade Agreement (FTA). New Zealand is trying to sell SMP at Rs 150 per kg against the price of Rs 280-290 prevalent in India," Bharvad said on Thursday during his address in the state legislature.
If imports are allowed, milk procurement prices are likely to drop by Rs 7-8 per litre. As of now, daily milk procurement by GCMMF stands at close to 200 lakh litres. A drop in procurement price will directly reduce the income of farmers at a time when the central government is aiming to double the income of farmers by 2022, said sources.
He informed the house that last year, the state government had given an assistance of Rs 50 per kg of SMP to farmers, which enabled export of SMP.
"We were able to export 30,000 tonnes of SMP. This raised the price of cow milk in the country from Rs 18-19 per litre to Rs 27-30 per litre, while the price of SMP of cow milk rose from Rs 140 per kg to Rs 280-290 per kg. Milk producers earned Rs 30,000 crore as a result of the assistance by the state government," said Bharvad.
He also drew attention to the fact that the government should ensure well being of local farmers and not of wealthy farmers from other countries. "The state government should represent to the central government to avoid such FTAs with countries," he said.
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