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
  • Quick Service Restaurants
    About Us: Virgo Hospitality Established in year 2016 with an outlet at..
    Locations looking for expansion Delhi
    Establishment year 2016
    Franchising Launch Date 2018
    Investment size Rs. 50 K - 2lac
    Space required 70
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater New delhi Delhi
  • Quick Service Restaurants
    Looking for your own lucrative business in ever growing fast..
    Locations looking for expansion New Delhi
    Establishment year 2009
    Franchising Launch Date 2012
    Investment size Rs. 10lac - 20lac
    Space required 200 - 800
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Rajouri New Delhi
  • Ice creams & Yogurt Parlors
    About Us: Established in 2016, Pop Hop is a unique and..
    Locations looking for expansion Karnataka
    Establishment year 2016
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 120
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Bangalore Karnataka
  • Express Food Joints / Drive Through
    Have you ever dreamt of owning a food franchise opportunity? Grab..
    Locations looking for expansion Rajasthan
    Establishment year 2010
    Franchising Launch Date 2011
    Investment size Rs. 10lac - 20lac
    Space required 250
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Jaipur Rajasthan
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