The prices of milk may not see a hike till the end of the elections as political compulsions would keep the milk prices in check. On the other hand, the states are also doling out bonus to the farmers to ensure steady supply of commodity.
The milk production, compared to last year, may decline by 2 per cent this summer and various states have started giving a bonus of Rs 2-5 a litre to farmers in order to ensure steady supply of the commodity sans a hike in the prices, said cooperative dairy sector officials, reports Economic Times.
According to the report, the officials informed that the additional cost will not be passed on to the consumer till the end of the elections in May. Last year, In December, the dairy cooperatives have anticipated the hike in milk prices because of lower supplies amid rising demand and higher cost of animal feed. The milk prices were raised last time in 2017 by Rs 2 a litre.
“Cooperative dairies are giving bonus or grant to their farmer members and not increasing the retail prices due to political compulsions,” an official of a private dairy brand was quoted in the report as saying.
As per the report, dairy farmers are a significant vote bank and the ruling parties in the states and Centre are trying to balance the interests of urban and rural voters by subsidising the farmers, instead of letting a hike in prices.
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