Maharashtra: Relief in dairy sector as govt extends subsidy for farmers by three months

While the government-mandated procurement price was Rs 27 per litre, farmers were getting paid between Rs 17 and 22 by the dairies. The state announced a subsidy of Rs 5 per litre till November 1 and paid about Rs 65.85 crore in this period to dairy farmers in the Pune division, which comprises the districts of Pune, Satara, Sangli, Solapur and Kolhapur. The dairies were asked to submit bank details of individual farmers as the state government wanted to transfer the subsidy directly to the farmers’ accounts.

As the state government had not issued fresh directives about the extension of the scheme, farmers had complained of lower realisations. Dairy farmers in western Maharashtra said the scheme had ended right when milk production is all set to go up. The production usually increases between November and February, when fodder and water are available in sufficient quantities.

Dairies and dairy farmers across the state have welcomed the government’s decision of extending the subsidy period.

Rajiv Mitra, managing director of the Phaltan-based Govind Milk and Milk Products, welcomed the extension of the subsidy, but added, “The state government should be prompt in releasing the subsidy”.