The Maharashtra cabinet announced on Thursday to provide a subsidy of Rs 5 per liter for milk to farmers supplying their produce to both cooperative societies and private milk projects within the state. The decision aims to support and bolster the dairy farming community.
Under this initiative, milk-producing farmers who are part of cooperative milk societies and private milk projects will receive a subsidy of Rs 5 per liter for cow milk. To ensure fair compensation, these farmers are required to pay a minimum rate of Rs. 27 per liter for milk with a quality standard of 3.5 fat / 8.5 SNF (Solids-Not-Fat) through online transactions to their respective bank accounts.
The subsidy will be directly debited (DBT) to the bank accounts of the concerned milk-producing farmers after the initial payment. Furthermore, a system of deductions and increases has been established based on the fat and SNF content, with a reduction of 30 paise for each point below the specified standard and an increase of 30 paise for each point above.
To facilitate the smooth implementation of this scheme, a specialized software has been developed through the banking system, ensuring a seamless subsidy transfer to the bank accounts of the deserving farmers.
According to data from November 2023, the daily milk collection through cooperative milk unions and private milk projects stands at an impressive 149 lakh liters. Considering the proposed subsidy of Rs. 5 per liter, an estimated subsidy of Rs. 230 crore will be required for a one-month period. However, this amount is subject to change based on fluctuations in actual milk collection.
The scheme is scheduled to be rolled out from January 11, 2024, to February 10, 2024, marking a crucial step towards supporting the dairy sector and ensuring the welfare of milk-producing farmers in the state.
Source : The mid day Jan 4th 2024