TEAM HERALD
bureau@herald-goa.com
PONDA: Goa Dairy has decided to hike the prices of cattle feed by Rs 2 per kilo from February 5, after incurring a loss of over Rs 4.6 crore on subsidy towards cattle feed since the last 10 months.
The move has, however, been opposed by milk farmers who claim that the price hike would discourage upcoming milk farmers, besides hampering local milk production.
A circular issued by Goa Dairy Managing Director Dr N Sawant stated that “the total loss incurred towards the cattle feed subsidy given to milk farmers since the last 10 months is over Rs 4.6 crore. With rise in loss, Goa Dairy is forced to hike the price of the cattle feed by Rs 2.”
“The new rates will be Rs 14.8 per kilo for high-protein and Rs 15.30 per kilo towards hi-energy cattle feed. Except for Goa, the selling price of cattle feed in other states is Rs 16 and above,” states the circular.
“To produce cattle feed, Goa Dairy has to procure raw material from neighbouring states. Since the prices of raw material have increased considerably, it has become difficult to maintain the selling price, resulting in a huge loss to Goa Dairy,” stated Sawant in the circular.
“From April 2012 to January 2013, Goa Dairy’s cattle feed factory has suffered a loss of Rs 4.6 crore on subsidy given to dairy farmers at an average of Rs 3.76 per kg.”
According to Goa Diary Chairman Shrikant Naik, the decision to hike the price by Rs 2 was to reduce the loss incurred on cattle feed supply.
“The hike on cattle feed price will only reduce the loss to some extent. We have also asked the State government for support. For sustainability, we cannot afford to bear the loss for a long time. The hike in price on cattle feed won’t effect the selling price of the milk,” Naik told Herald.
On an average monthly, Goa Dairy supplies about over 1,200 tonnes of cattle feed to about 10,000 dairy farmers across the State.
“As there is rise in milk production, there is also rise in demand for cattle feed. There are about 10,000 milk farmers supplying milk through 174 societies across the State,” informed Sawant.
“The number of milk farmers supplying milk fluctuates from 8,000 to 10,000 depending on the availability of milk. Though on average, 1,200 tonnes of cattle feed is supplied, but since the last few months it is about 1,400 tonnes,” added Sawant.
When contacted, former Goa Dairy chairman Mahadav Sahakari, who is also among the board of directors, told Herald that the rise on cattle feed will definitely affect the milk farmers and its immediate effect will be on local milk production.
Opposing the rise in cattle feed price, Rajesh Dessai, member of the Goa Dhudh Utpadak Utkarsha Sanghatana, said in Goa, the cost of milk production is already high and Goa Dairy had increased the price by Rs 2 per kilo on cattle feed.
“The Goa Dairy should roll back the prices in the interest of milk farmers or else new entrants in this business will be discouraged. I know that Goa Dairy is suffering loss due to subsidy on cattle feed, but something has to be done so that milk farmers are not burdened by added prices,” said Dessai.
