The Gujarat Cooperative Milk Advertising and marketing Federation (GCMMF), an umbrella physique of milk cooperative unions within the state, hiked the costs of Amul milk (the Amul Gold selection and Buffalo milk) by Rs 2 per litre on October 15. Gujarat, nonetheless, was supplied an exemption. The GCMMF is the nation’s largest milk cooperative and Amul’s guardian firm.
With members related to the BJP controlling the cooperative, the exemption was criticised by West Bengal Chief Minister Mamata Banerjee who accused the BJP of indulging in vote-bank politics in poll-bound Gujarat.
In a telephonic interview with The Indian Specific, GCMMF’s managing director RS Sodhi speaks in regards to the hikes this 12 months, the pricing within the worldwide markets, the exemption in Gujarat, and the backlash the transfer acquired.
Excerpts:
Milk costs have been hiked thrice this 12 months. The quantum of the hike is greater than 10 per cent compared to final 12 months. What’s the motive behind the rise?
The hike in milk costs additionally interprets right into a hike within the earnings of farmers (milk producers). These farmers have been underneath extreme stress final 12 months as a result of the price of milk manufacturing, together with the price of dry and inexperienced fodder, went up by 20 per cent.
The costs of gas and different commodities are additionally on the rise. With steep gas costs, the freight price goes up. Power and logistics prices have additionally risen. All of this provides to the price of milk manufacturing.
As the top of the GCMMF, I’m additionally dealing with a dilemma. The rise in salaries of execs, improve within the bottomline of corporates, and development in fairness markets are all termed as growth.
However on the subject of an increase within the farmer’s earnings, we time period it inflation and value rise. This mindset wants to alter. We often suppose from an city perspective, however 60 per cent of the inhabitants lives in rural areas and relies on agriculture, dairying, and animal husbandry.
How is milk priced within the worldwide markets?
International locations that haven’t bothered about meals safety are paying a hefty value. Sri Lanka, Pakistan, and European nations are examples. Milk costs have risen by 30 per cent in America and Europe. The hike in India is among the many lowest.
Why have costs not been elevated in poll-bound Gujarat?
You will need to perceive the distinction between Amul Gold and Amul Taaza, which is about Rs 12 per litre. We have been subsidising costs outdoors Gujarat and the distinction between the state and others was Rs 10. So, we raised costs for all markets outdoors Gujarat. They’re now at par throughout the nation. We have been discovering it tough to soak up freight prices. Furthermore, the retail margins have been additionally double in comparison with Gujarat.
Secondly, shoppers have been shifting in the direction of Amul Gold from Amul Taaza. The widespread man consumes Taaza, which is toned milk with three per cent fats and its costs haven’t been raised. Amul Gold falls within the premium class. We have been dropping cash due to the Rs 2 value distinction.
Mamata Banerjee criticised the transfer to go away Gujarat out of the value hike, alleging it was a part of the BJP’s vote-bank politics. What’s your response?
Within the final six months, we’ve got given more cash to farmers (milk producers) in West Bengal (than in every other place). Milk procurement costs have been raised thrice on this interval.