Pune: Milk farmers in Maharashtra are on an indefinite strike. Since Monday (July 16), they have been stopping tankers carrying milk from moving towards Mumbai and Pune, and emptying their contents as a way of raising their demands. Their main demand is a subsidy of Rs 5 per litre to compensate for crashing prices.
“The procurement rates of cow milk have plummeted to Rs 17-18 against Rs 24-27 nine months ago. The farmer spends Rs 20-25 to produce one litre of milk for which he is getting Rs 17-18. That is why we had announced the strike by cutting milk supply to Mumbai and other cities in the state from July 16,” said Raju Shetty, chairperson of the Swabhimani Shetkari Sanghatana, which has called the strike. Private and cooperative dairies have also supported the strike.
Police have offered protection to milk tankers heading to the cities but supply has been severely affected and milk could soon run out.
Why cow milk prices plummeted
Vishnu Hingane, a member of the Dudh Utpadak Kalyankari Sanstha (Milk Producers Welfare Association) and chairman of the Katraj Milk Co-operative Dairy, Pune, said, “1.24 crores of litres of milk are collected by both private and co-operative dairies in the state. Around 75 private dairies collect 60% of milk while 40 co-operative dairies from across the state collect 40% of milk. Out of total milk collected, around 60% of the milk is used to produce milk powder and the remaining 40% is sold as milk in the market.”
He added, “International rates of milk powder and butter decreased due to oversupply 8-9 months ago. That led dairies to cut down or stop the export of both milk powder and butter. As they were not earning a profit, the dairies cut down procurement rates to Rs 17-18. However, farmers have to spend Rs 20-25 per litre. Thus farmers are running into losses.” Rates of milk powder have gone down to Rs 100-115 from Rs 160-170 a year ago.
Milk farmers on a strike in Maharashtra. Credit: Varsha Torgalkar
Shetty added: “Farmers having small patches of land and farm labours are the ones who do the business of dairy farming. They don’t have an alternate option for livelihood. Now they are not being able to get as much money as they spend on taking care of cows. State government should offer Rs 5 per liter to milk farmers.”
Though Shetty had first announced about the July 16 strike weeks ago, the state failed to respond or announce relief for farmers. A few days ago, the government announced Rs 50 per kg subsidy to milk powder exporters and Rs 5 subsidy per liter to milk exporters, but this is not likely to reach the farmers. Immediately dairies announced a hike of Rs 3 in procurement rates.
Shetty said, “The state government’s announcement is a fraud. Eleven liters of milk is needed to make one kg of milk powder. Thus, dairies would get Rs 50 per kgs for milk powder.”
Farmers’ woes
Sangita Jadhav, a farmer from Pandharpur in Solapur district, said, “I have half acre of land that I use for harvesting green fodder for three Jersey cows. Each Jersey cow requires 30 kg green fodder, 40 kg dry fodder like grains and concentrates like oil cakes and so on. She needs at least 40 litres of water. One labourer or somebody from home is needed for their maintenance.”
She added, “Thus, I need to spend Rs 300-350 on each Jersey cow that gives 10-15 litres of milk. At a Rs 18 per litre rate, I get Rs 280. I am running into huge losses. As this area is drought affected, I will not get labour work at other farms every day as well. How can I take care of my school-going children if I don’t earn?”
Sharmila Yeole, another farmer, said, “I have two indigenous cows and each requires Rs 100-120 for fodder, water and labour work. Each cow gives 3-4 litres of milk and thus I earn Rs 72-75. Besides, cows are our only property that we cannot sell at a lower rate now.” Due to the beef ban, farmers cannot even think of selling cows for slaughter. Farmers who are extremely poor end up abandoning their cows.
Milk farmers on a strike in Maharashtra. Credit: Varsha Torgalkar
Most of the private and co-operative dairies in the state have supported the strike by not collecting milk for one day. They had also offered a hike of Rs 3 per litre in procurement, but Shetty has refused. He is firm on a subsidy from the state.
Dashrath Mane, chairman of Sonai Milk Private Limited, and a member of private milk dairies organisation, said, “The demand of farmers to give Rs 5 subsidy per liter is reasonable as currently, they are running into losses due to low rates of milk powder at international level. Farmers and dairies would suffer major economic losses due to the strike. That is why the strike should end and hence government should work out a formula that will be satisfactory for farmers.”
The issue has been simmering for months, but the government has not come up with a plan to help milk farmers. Chief minister Devendra Fadnavis has been quoted as saying he is ready to talk but the agitators remained unwilling. He also expressed fears that subsidies could result in scams since only 40% of farmers were registered with the government and others could take advantage too.
Varsha Torgalkar is an independent journalist based in Pune.