The current prices of milk are increasing continuously due to the shortage of fat milk. For this reason, dairy companies are left with only two options, either they increase the prices of full cream milk or they reduce the amount of fat in milk.
Why milk prices are increasing
in country Milk prices of Continuously skyrocketing. milk sprouts prices Has spoiled the budget of people’s kitchen. Since the middle of October last year, compared to Amul Toned Milk, its full cream milk 10 was charging more for Rs. Amul It is operated by the Gujarat Cooperative Milk Marketing Federation. Its gold full-cream milk costs Rs 62 per liter in Delhi.
This milk contains 6 percent fat and 9 percent solid-not fat. At the same time, the cost of tolled milk in Delhi is Rs 52 per litre. It contains 3 percent fat and 8.5 percent solid-not fat. But now this difference has become Rs.12. Now the price of gold full cream milk is Rs 66 per litre, while the price of toned milk has gone up to Rs 54 per litre.
Milk prices are increasing due to fat
The second largest dairy company in India is the Karnataka Cooperative Milk Producers Federation. He has also increased the prices of Nandini milk. Before March, the price of its toned milk was Rs 39 and full cream was Rs 50 per litre. Even though the prices are the same even today, the company is now offering 900ml full cream milk for Rs 50 instead of 1 litre. If you look at it per liter, then it will cost around Rs.55.56. Thus, there is a difference of Rs 16.56 between the price of toned milk and 1 liter of full cream.
The Tamil Nadu Cooperative Milk Producers Federation has also increased the price of Aavin brand full cream milk from Rs 48 to Rs 60 per litre. However, the price of toned and standardized milk has been kept at Rs 40 and Rs 44 per litre. However, in Madurai, Tirunelveli and Coimbatore, the company has replaced the standardized milk with cow’s milk. It contains 3.5% fat and 8.5% SNF.
Milk companies are struggling with lack of fat
The current prices of milk are increasing continuously due to shortage of fat. For this reason, dairy companies are left with only two options, either they increase the prices of full cream milk or they reduce the amount of fat in milk. Some time ago there were reports of disappearance of branded ghee and butter of some companies from the market. According to the Indian Express report, RS Sodhi, president of the Indian Dairy Association, says that this is happening because of the falling share of buffaloes in the national milk production. Buffalo milk contains an average of 7% fat and 9% SNF.
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Demand for dairy products other than milk is increasing
Apart from milk, the demand for ghee, ice cream, khoya, paneer is continuously increasing in the market. But the supply is of low fat milk. However, export is also the reason for the increase in the prices of high fat milk. India exported more than 33,000 tonnes of ghee, butter and anhydrous milk fat worth Rs 1,281 crore during the year 2021-22.
The increase in exports is taking place at a time when farmers and cattle herders are not able to take care of their animals properly. These situations have happened since Corona. During Corona, he earned less from milk. Because of this the animals could not be fed enough fodder. Apart from this, due to lumpy disease in animals, they also faced a lot of trouble.
GST is also the reason for increase in milk prices
GST in milk is also a big discrepancy. Actually there is no GST on milk. But SMP is taxed at 5% and milk fat at 12%. For this reason, where dairy companies do not pay any GST on milk purchased from farmers, while they have to pay GST on selling it. On top of this, she cannot even claim input tax credit. If dairy companies increase fat in milk, then the tax burden on them would also increase.
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