Milk is being drained onto the streets of Maharashtra and vehicles carrying milk are being set on fire as farmers’ associations step up their agitation. In an effort to placate angry dairy farmers, the Maharashtra government has now announced a conditional subsidy of Rs 5 for milk producers. What’s the condition? That milk cooperatives and private milk collectors will get this subsidy only if they charge Rs 25/litre to milk producers.
While farmers have now withdrawn their protest over demands for better procurement prices for milk, why were Maharashtra’s dairy farmers blocking tankers carrying thousands of litres of it?
Milk Crisis: As Govt Agrees to Conditional Subsidy, Protests Cease
1. Why Are Dairy Farmers Protesting?
Dairy farmers have laid out a list of demands to the Maharashtra government, a key one being an increase in procurement prices. In 2017, the state government fixed the procurement price at Rs 27 per litre for cow’s milk but farmers allege they barely receive Rs 17, which is not enough to cover their production costs.
The cost of production of milk in Maharashtra is Rs 34.80 per litre. Because of this, the government has declared that milk farmers whose milk has a purity level of 3.5 fat or 8.5 SNF (Solid not fat), must receive at least Rs 27. This was about a year ago, but farmers are receiving only Rs 17.
Ajit Navale, Maharashtra General Secy, All India Kisan SabhaAccording to Navale’s estimate, a dairy farmer in the state ends up spending Rs 18 from his own pocket per litre of milk. “This is per day. We are demanding that even if you don’t give us Rs 34.80, at least give us the Rs 27 that the government had promised us,” he added.
About 1.3 crore litres of milk is collected by Maharashtra’s organised dairy sector daily. While milk bought under the government scheme fetches the dairy farmers one of the highest rates of Rs 27, only about 1.5 lakh litres is collected under this price range. Private diaries and co-operative federations buy the rest of the stock. Dairy farmers demand that the government fix a base rate for private and co-operative diary as well.
Apart from increasing the base rate, the protesters are also demanding a subsidy of Rs 5 per litre be deposited directly into the accounts of farmers.
Another concern is GST imposed on milk products like butter.They (government or milk federations) must deposit Rs 5 per litre into the account and fix the rates. There must be subsidy and also tax exemptions for the dairy farmer.
Raju Shetti, MP & leader of Swabhimani Paksha
A police vehicle accompanies milk tankers on their way to Mumbai on Pune-Bangalore National Highway. (Photo courtesy: PTI) Why Pvt Diaries & Co-ops Pay Only Rs 17 Per Litre
A sizeable portion of milk produced in Maharashtra is exported in the form of milk powder. Fall in rates of milk powder is one of the key reasons for the crisis.
Out of the 1.3 crore litres of milk collected daily, 40 lakh litres is turned into milk powder and 90 lakh litres are packed into pouches. We are told that since the prices of powdered milk has fallen, they can’t pay us the amount. But why are we not being compensated for the rest of the 90 lakh litres of milk that’s being sold in packets? Consumers are charged Rs 42 for 1 litre of packaged milk, that has not changed from earlier, then why were farmers’ prices reduced?
Ajit Navale, Maharashtra General Secy, All India Kisan SabhaExpand2. Why Were The Protests Called Off?
After nearly a week-long agitation, dairy farmers called off the protest after the Maharashtra government announced the rate of Rs 25 per litre for milk. Federations of milk suppliers and processors' bodies are supposed to buy milk from farmers at Rs 25.
The state government has also agreed for a conditional Rs 5 subsidy for milk producers. This, however, will not apply to packaged milk. Minister of State for Animal Husbandry Arjun Khotkar made the announcement in the Nagpur legislative council.
A subsidy worth Rs 50 per kg for milk powder exporters was earlier announced on 10 July. But exporters accepting the subsidy would not get the benefit of the Rs 5 subsidy on milk. Milk cooperatives and private milk collectors are entitled to the subsidy only if they charge Rs 25/litre to milk producers. The new rates will come into effect from 21 July 2018.
A day before the government’s announcement, Maharashtra Water Resources Minister Girish Mahajan held talks with Swabhimani Paksha MP Raju Shetti, who is spearheading the protests.
Expand3. How Are The Protesters Agitating?
The demonstration by protesting farmers and members of the Swabhimani Shetkari Sanghatan and Maharashtra Kisan Sabha began gaining momentum from 16 July. Tankers filled with milk were stopped along Pune, Nashik, Buldhana, Palghar and Sangli among other districts and lakhs of litres of milk was spilled on the roads.
Workers of Swabhimani Shetkari Sangathna wash buffaloes with milk as a mark of protest. (Photo: ANI) In certain areas like Pune and Baramati, the agitators threw tetra packs and pouches of milk on the roads. The agitation took a violent turn in Malegaon after protesters set a vehicle carrying milk on fire as a mark of protest.
We won’t sell milk. The government is trying to force us to sell milk and in certain places, they have deployed the police to force to stop us. Because of this, the farmers were forced to turn violent and burn vehicles in these places.
Raju Shetti, MP & leader of Swabhimani PakshaOn 18 July, Swabhimani Paksha MP Raju Shetty reached Dahanu station in Maharashtra’s Palghar district and camped at the station to stop trains carrying milk from Gujarat to Mumbai.
“There are approximately 1.3 crore litres of milk being produced across the state per day. This is being distributed amongst the poor and hungry. Barely 1 percent of this milk is being spilled on the roads. We will continue our agitation till the govt agrees to our demands,” added Shetti.
Expand4. How Are People Reacting to the Protests?
The protesters’ move to empty thousands of litres of milk on the roads has been criticised by many on social media.
Responding to the criticism, Ajit Navale from All India Kisan Sabha said:
Farmers don’t feel happy throwing away their produce, be it vegetables and grains or milk. It is a tragedy for them. We work hard all day to produce milk just like you have to work for 7-8 months to cultivate vegetables. They are having to drain litres of milk that they produced by shedding their sweat and blood.
But, he added, the strike would not be withdrawn till the government acceded to their demands. "Given the policies that the Govt is adopting, if a farmer has to put in an additional Rs 18 from his own pocket to produce a product for months and suffer losses, what other choice does he have left? If we are selling something at such heavy losses, that’s as good as throwing it away,” said Navale.
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Expand
Why Are Dairy Farmers Protesting?
Dairy farmers have laid out a list of demands to the Maharashtra government, a key one being an increase in procurement prices. In 2017, the state government fixed the procurement price at Rs 27 per litre for cow’s milk but farmers allege they barely receive Rs 17, which is not enough to cover their production costs.
The cost of production of milk in Maharashtra is Rs 34.80 per litre. Because of this, the government has declared that milk farmers whose milk has a purity level of 3.5 fat or 8.5 SNF (Solid not fat), must receive at least Rs 27. This was about a year ago, but farmers are receiving only Rs 17.Ajit Navale, Maharashtra General Secy, All India Kisan Sabha
According to Navale’s estimate, a dairy farmer in the state ends up spending Rs 18 from his own pocket per litre of milk. “This is per day. We are demanding that even if you don’t give us Rs 34.80, at least give us the Rs 27 that the government had promised us,” he added.
About 1.3 crore litres of milk is collected by Maharashtra’s organised dairy sector daily. While milk bought under the government scheme fetches the dairy farmers one of the highest rates of Rs 27, only about 1.5 lakh litres is collected under this price range. Private diaries and co-operative federations buy the rest of the stock. Dairy farmers demand that the government fix a base rate for private and co-operative diary as well.
Apart from increasing the base rate, the protesters are also demanding a subsidy of Rs 5 per litre be deposited directly into the accounts of farmers.
Another concern is GST imposed on milk products like butter.
They (government or milk federations) must deposit Rs 5 per litre into the account and fix the rates. There must be subsidy and also tax exemptions for the dairy farmer.Raju Shetti, MP & leader of Swabhimani Paksha
Why Pvt Diaries & Co-ops Pay Only Rs 17 Per Litre
A sizeable portion of milk produced in Maharashtra is exported in the form of milk powder. Fall in rates of milk powder is one of the key reasons for the crisis.
Out of the 1.3 crore litres of milk collected daily, 40 lakh litres is turned into milk powder and 90 lakh litres are packed into pouches. We are told that since the prices of powdered milk has fallen, they can’t pay us the amount. But why are we not being compensated for the rest of the 90 lakh litres of milk that’s being sold in packets? Consumers are charged Rs 42 for 1 litre of packaged milk, that has not changed from earlier, then why were farmers’ prices reduced?Ajit Navale, Maharashtra General Secy, All India Kisan Sabha
Why Were The Protests Called Off?
After nearly a week-long agitation, dairy farmers called off the protest after the Maharashtra government announced the rate of Rs 25 per litre for milk. Federations of milk suppliers and processors' bodies are supposed to buy milk from farmers at Rs 25.
The state government has also agreed for a conditional Rs 5 subsidy for milk producers. This, however, will not apply to packaged milk. Minister of State for Animal Husbandry Arjun Khotkar made the announcement in the Nagpur legislative council.
A subsidy worth Rs 50 per kg for milk powder exporters was earlier announced on 10 July. But exporters accepting the subsidy would not get the benefit of the Rs 5 subsidy on milk. Milk cooperatives and private milk collectors are entitled to the subsidy only if they charge Rs 25/litre to milk producers. The new rates will come into effect from 21 July 2018.
A day before the government’s announcement, Maharashtra Water Resources Minister Girish Mahajan held talks with Swabhimani Paksha MP Raju Shetti, who is spearheading the protests.
How Are The Protesters Agitating?
The demonstration by protesting farmers and members of the Swabhimani Shetkari Sanghatan and Maharashtra Kisan Sabha began gaining momentum from 16 July. Tankers filled with milk were stopped along Pune, Nashik, Buldhana, Palghar and Sangli among other districts and lakhs of litres of milk was spilled on the roads.
In certain areas like Pune and Baramati, the agitators threw tetra packs and pouches of milk on the roads. The agitation took a violent turn in Malegaon after protesters set a vehicle carrying milk on fire as a mark of protest.
We won’t sell milk. The government is trying to force us to sell milk and in certain places, they have deployed the police to force to stop us. Because of this, the farmers were forced to turn violent and burn vehicles in these places.Raju Shetti, MP & leader of Swabhimani Paksha
On 18 July, Swabhimani Paksha MP Raju Shetty reached Dahanu station in Maharashtra’s Palghar district and camped at the station to stop trains carrying milk from Gujarat to Mumbai.
“There are approximately 1.3 crore litres of milk being produced across the state per day. This is being distributed amongst the poor and hungry. Barely 1 percent of this milk is being spilled on the roads. We will continue our agitation till the govt agrees to our demands,” added Shetti.
How Are People Reacting to the Protests?
The protesters’ move to empty thousands of litres of milk on the roads has been criticised by many on social media.
Responding to the criticism, Ajit Navale from All India Kisan Sabha said:
Farmers don’t feel happy throwing away their produce, be it vegetables and grains or milk. It is a tragedy for them. We work hard all day to produce milk just like you have to work for 7-8 months to cultivate vegetables. They are having to drain litres of milk that they produced by shedding their sweat and blood.
But, he added, the strike would not be withdrawn till the government acceded to their demands. "Given the policies that the Govt is adopting, if a farmer has to put in an additional Rs 18 from his own pocket to produce a product for months and suffer losses, what other choice does he have left? If we are selling something at such heavy losses, that’s as good as throwing it away,” said Navale.
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)