Costly affair

Bhubaneswar, Dec. 16: The Odisha State Cooperative Milk Producers’ Federation Limited (Omfed) has revised milk prices for the third time this year.

The new rates will be effective from December 21.

The latest raise will push milk prices up by Rs 2 per litre. Omfed, which has majority stakes in the state’s milk market, made an announcement to this effect yesterday evening.

Officials of Omfed said while the price of double-toned milk would go up to Rs 32 per litre from Rs 30, toned milk would be available for Rs 34 instead of Rs 32 earlier.

The two hikes earlier were effected in February and August, the prices going up by Rs 2 per litre each time.

However, the increase in milk prices has not gone down well with consumers, though dairy farmers and others associated with the business have welcomed state government’s decision.

Omfed officials said that profits generated from the higher margin would go directly to the farmers.

“The decision to raise milk prices was taken as the dairy farmers had been demanding better procurement price for milk. The state government after considering their demands took this decision. It is true that milk producers in our state get much less compared to their counterparts in other states. The increased profit margin will directly go to the farmers,” said Basant Mishra, general manager (human resource development and marketing), Omfed.

Officials said that consumers would get milk according to the new prices from December 21, as the packets printed with old prices would have exhausted by then.

Sources said that farmers were getting Rs 24.50 per litre but after the hike they would get Rs 26.50.

While the milk price had gone up only once in 2013, it is the third hike this year. This has sparked criticism among consumers.

Not only have they expressed dissatisfaction over the quantum of hike, but they have also criticised the government for frequent increase in rates.

“When we feel relaxed a little seeing the cut in petrol and diesel prices, the milk price hike dilutes our happiness. Is not there any other way for the state government to provide better procurement price to farmers than increasing the milk rate?” said Anshuman Mohanty, a consumer. Mohanty, who drinks at least 10 cups daily, is apprehensive that tea prices would also go up now.

Homemakers have also criticised the state government’s decision to raise milk price for the third time in a year. “With the hike my expenditure on milk only has gone up from Rs 300 to Rs 500 in the last one year,” said Sanjukta Rout, a homemaker.

Tea kiosk owners also hinted at a possible increase in price. “We will be forced to revise prices. There is no option left for us. Our customers will hopefully understand,” said Raju, a tea kiosk owner in the city.

Traders dealing in cheese, paneer and khua said that whenever the price of milk goes up by Rs 1 per litre their rates go up by at least Rs 5 per kg. Accordingly, the rate of cheese would be Rs 145 per kg, an increase of Rs 10 and that of khua would be Rs 330 per kg. Paneer will now cost Rs. 175 per kg. Pradip Behera, secretary of Chhena and Khua Byabasayee Mahasangha said price hike was a good decision, as it would help the farmers.

“As we are increasing the price of milk products, it will also affect the sweetmeat industry and their prices will also go up accordingly,” said Behera.

Milk farmers expressed their satisfaction over price hike. Omfed is the major player in the milk market and controls nearly 45 per cent of the market share in Odisha. It sells nearly 4.50 lakh litres of milk everyday. More than 2.81 lakh farmers are registered under Omfed till date.