Lockdown-like restrictions throughout Maharashtra as a result of second wave of Covid-19 has impacted demand for milk and milk merchandise hitting gross sales by a minimum of 40-60%. With provide exceeding demand, dairies have diminished their procurement costs by Rs 4-5 per litre within the final fortnight. Consequently, farmers are actually being paid Rs 26-27 per litre as a substitute of Rs 30-32 per litre.
From a median per day gross sales of 1.2 crore litres of which 95 lakh litres is bought in milk pouches, the sale of milk has now dropped right down to 50 lakh litres with dairies being compelled to transform the remainder to anhydrous skimmed milk powder (SMP).
Dr Vivek Ksheersagar, MD, Pune District Cooperative Milk Producers Union — which retails milk and dairy merchandise below the model Katraj — stated that dairies that have been nonetheless recovering from the primary Covid wave have been hit badly by the second wave. “Our day by day gross sales have dropped by round 20-25% and sale of by-products has dropped by 50%. The dairy has diminished procurement costs for farmers to Rs 26 per litre from Rs 29 per litre,” he stated.
“The is a marked lack of enthusiasm amongst individuals in celebrating festivals. The drop in demand is as a result of restrictions since eating places and grocery shops are open for a sure variety of hours. Furthermore, social capabilities will not be permitted and malls, cinema halls have been shut, he stated. The sale of butter, paneer, lassi, buttermilk and ice-creams has been hit to the tune of a minimum of 20%, in response to business individuals. If the lockdown continues, the dairy could also be compelled to cut back costs additional,” stated Ksheersagar.
Prakash Kutwal, secretary, Maharashtra Milk Producers and Processors Welfare Affiliation acknowledged that whereas procurement costs have dropped, all of the dairies have taken a call to not scale back the procurement value beneath Rs 25 per litre for farmers. Final yr in March, milk costs had dropped right down to Rs 17-18 per litre however the costs improved to Rs 31-32 per litre after the restrictions have been eased and instances had dropped down
Dashrath Mane, chairman and managing director of the Indapur-based Sonai Dairy identified that day by day gross sales of some dairies have been hit to the tune of 40-60% since places of work, eating places and small tea shacks have shut down as a result of lockdown. “Pouch milk gross sales have been hit due to the closure of resorts, fewer travellers in railway stations and state transport depots inflicting a drop in tea gross sales. The institutional gross sales of dahi and buttermilk have been hit because the workplaces have shut down once more,” he stated.
Ice-cream makers, beverage makers are additionally not shopping for in giant portions, he stated. Sonai Dairy has diminished procurement costs for farmers from Rs 32 per litre to Rs 25 per litre.
In accordance with Mane, the current collected SMP inventory in Maharashtra could be round 35,000 tonnes and 15,000 tonnes of butter, whereas nationally the SMP inventory could be round 1.5 lakh tonnes. The federal government must intervene assist dairies with export incentives to convey stability to the market, he stated. SMP costs are presently between Rs 170 to Rs 200 per kg and have been round 250-260 per kg after the market recovered put up the primary Covid lockdown.