February 21: The government has completed preparations to increase the price of milk against the National Dairy Development Policy. According to the National Dairy Development Policy 2078, the price of milk can be reviewed every two years based on the study report of the Dairy Development Board. However, attempts have been made to increase the price of milk in less than one year following an understanding between the businessmen and the government.

The National Dairy Development Policy 2078 states that “The price of milk can be reviewed every two years based on the annual price increase and production cost based on the study report of the Dairy Development Board.”

However, businessmen argue that they are compelled to hike the price stating that there have been price hike of grains, bran feeds, hay, freight charges, etc.

Executive Director of the National Dairy Development Board, Rajendra Prasad Yadav stated that the price of milk should be increased every two years as per the policy.

But due to the increase in the price of raw materials, a situation has been created compelling the producers to increase the prices.

“There is a situation where we have to import the feed, bran and medicine required for cattle from abroad. The price of those items is not under our control. Now, when the price of those items have increased, the cost of the farmers have increased as well and it seems like the price has to be increased,” he said.

Yadav said that since the price of grain and bran has more than doubled, and the price of milk has not increased yet, the farmers may abandon this sector. This may create a situation where the domestic production may be reduced and imports from India may become mandatory. So, there is the pressure to increase the price, argued Yadav.

A study conducted at the farmers level by the study committee formed under the coordination of the board to study the price of milk shows that the price must be increased. According to Yadav, the committee concluded that the price should be increased by Rs 10 per liter and the report has been sent to the Ministry of Agriculture for approval. After the approval of the ministry, the the council of ministers will decide about increasing the price.

Earlier in December, the Dairy Industry Association had unilaterally increased the price of milk by Rs 14 per liter stating that the increase in the prices of raw materials like grains and bran forced them to increase the price. After this step was widely criticized, the price hike was withdrawn. According to the report of the study committee, the government is prepared to increase the price up to Rs 10 per liter, but the industrialists have been maintaining the stance that the price should be increased by Rs 14.