MUMBAI: In a major relief to agitating milk producers, the Maharashtra state cabinet on Tuesday cleared proposal to grant Rs 3 per litre of subsidy to milk powder manufacturers.
The decision would be applicable for a period of 30 days from the date of government resolution and only those milk power producers whose power manufacturing would be at least 20 percent higher than that of the month of March 2018.
Milk production in the state is at peak since past few days. Generally private as well as the cooperative dairies tend to produce milk power when milk production is high. However, due to fall in rates of milk powder in the national as well as the international markets, the dairies are not inclined to produce milk powder. Also, they tend to purchase milk at lower rates to compensate for the losses in making of milk powder. Hence, the government has decided to subsidise production of milk powder, Mahadeo Jankar, minister for animal husbandry, told the New Indian Express.
The losses incurred by milk producers in powder making is about Rs 3.25 per litre and hence the government has decided to give them a subsidy of Rs 3. The state had surplus 26,506 tonnes of milk powder by March end, he added.