Hotline: 1800 102 2007
X
Search Business Opportunities
Nov, 14 2017

Dairies Cut Procurement Milk Prices

Maharashtra’s milk farmers are more vulnerable to international price fluctuations since state is the leader in export of milk products

Indian dairy companies have taken a hit on their margins due to the fall in international prices of skimmed milk powder (SMP) and doubling of domestic tax on ghee. Dairies have cut milk procurement prices 10-22 per cent in the past few months.

Prakash Kutwal, secretary, Doodh Utpadak Va Prakriya Vyavasayik Kalyankari Sangh (milk producers and processors’ welfare federation) said “SMP price has declined from Rs 260 per kg to Rs 120 per kg in the international market in the last 3-4 months. Maharashtra produces about 30 million litres of milk every day, of which only about eight million is used as liquid pouched milk. The bulk of milk procured is used for making various dairy products such as butter, SMP, ghee, cheese, curd, etc. Maharashtra’s milk farmers are more vulnerable to international price fluctuations since state is the leader in export of milk products. Sale of ghee has fallen substantially as the price has increased from Rs 30 per kg of smaller brands to Rs 55 per kg in case of national brands. Maharashtra government increased the procurement price of cow’s milk to Rs 27 per litre for 3.5 per cent fat and 8.5 per cent SNF (solid not fat), up about 12 per cent”.

The tax on ghee increased to 12 per cent under GST from 6 per cent before the implementation of the GST regime.

Comment
Related opportunities
  • Tea and Coffee Chain
    About: High on Tea is a popular and interesting tea café..
    Locations looking for expansion Maharashtra
    Establishment year 2015
    Franchising Launch Date 2017
    Investment size Rs. 10lac - 20lac
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • Other Vocational Training
    About Institute: JD Institue of Fashion Technology was established in the..
    Locations looking for expansion Karnataka
    Establishment year 1988
    Franchising Launch Date 1990
    Investment size Rs. 30lac - 50lac
    Space required 2500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Bangalore Karnataka
  • About Us: Carlton London was formed in 1989 first as a..
    Locations looking for expansion Delhi
    Establishment year 2007
    Franchising Launch Date 2017
    Investment size Rs. 20lac - 30lac
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Imitation/Art/Junk Jewellery
    About Us Brand Tistabene is owned by the leading lifestyle retail..
    Locations looking for expansion Delhi
    Establishment year 2016
    Franchising Launch Date 2017
    Investment size Rs. 20lac - 30lac
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts