This video is part of our annual Round table during the Dairy industry expo at Pune on Oct 12, 2019. It talks about the prevailing milk subsidy by the cooperative sector and questions its benefit to the private sector. Due to such subsidies, the level playing field gets disturbed in the country. It becomes more relevant today when farmers of most of the states are agitating over receiving more subsidy for their produce. Also read Maharashtra farmers seek Rs 10/liter as milk subsidy

It is important for all stakeholders to review this policy of providing milk subsidy to dairy farmers. The policy is doing more bad than good for the farmers as well as dairy cooperatives. It has become a negative spiral. The more subsidy you give , the more milk you get. Excess milk has not demand at market today so more stocks of smp and butter. No support is available to fund the stocks so more stocks lead to further reduction of milk price to set off the holding costs. Where this chain is going to end is not known to every one…..Just think Also read Milk procurement prices again getting slashed in Karnataka : Unions seeking more price subsidy