World Perspectives
feed-grains wheat

Indian Subcontinent Regional Analysis

Glut Supply of Milk Prompts GOI to Offer Export Incentive When the state government of Maharashtra reduced the the cooperatives’ purchase price of milk from farmers to Rs.18/lit, a drop of over 21.73 percent from Rs.23/lit, private players lowered the prices offered to farmers outside of the cooperative system. That had a cascading effect, and the reason for this situation is a supply glut. The current cost of production at farm is Rs.22-23/lit, the same as farmers were receiving. The cooperatives would give a bonus based on the profits accrued at the end of the year, but farmers’ returns via sales would go down with the current reduced milk price. The retail milk prices remained unchanged, however. Because of the drop in proc...

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