The Dairy Development Board, the dairy regulatory body, had coordinated the meeting among dairy farmers, private dairy producers and DDC, the state owned dairy producer, to come to a common understanding to raise milk price.
“We can raise price of our products independently without consulting with any party in this age of free market. So, it is not necessary to have discussion with other stakeholders,” Ajab Lal Yadav, general manager of DDC told myrepublica.com.
Yadav clarified that DDC, as a government entity, can´t raise the milk price at a rate the private dairies can do.
“To fix prices of products jointly by market players is nothing short of cartelling. We will set purchasing and selling prices of dairy products independently as per existing Dairy Policy and Consumer Act, which oppose the cartel system in fixing prices,” added Yadav.
He said that DDC is not opposing the milk price hike, adding that DDC would fix prices independently keeping in view with the interests of both general consumers and farmers.
“We could not come to an understanding today (Sunday) due to the absence of DDC, which holds more than 45 percent of total dairy market. We are trying to get DDC to participate in the tripartite meeting for common understanding on increasing the price of fresh milk,” Dhaka Ram Aryal, chairman of Central Dairy Cooperatives´ Association said after the meeting.
Aryal said milk price must be raised by at least 25 percent, claiming that the production costs have shot up by more than 25 percent over the year.
“Farmers will be compelled to quit dairy production if milk price doesn´t go up in consistency with rising production costs.” He also informed that a delegation of farmers met Minister for Agriculture and Cooperatives Mrigendra Kumar Sigh Yadav to apprise the problems facing dairy farmers.
DN Pathak, executive director of DDB, said the meeting was called to bring an understanding among the stakeholder concerned to raise the price in a manner that none of the stakeholder would suffer. The next meeting of dairy stakeholders is scheduled for Tuesday.
Demanding a hike in milk price by Rs 6 to Rs 8 per liter, farmers had given a weeklong ultimatum last week to the government to raise the price or face agitation. Farmers have already threatened to take to the streets if price of their produce is not increased. Farmers are selling fresh milk for Rs 20 to Rs 22 per liter where as they claimed that the cost of production hovers around Rs 30 per liter.
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