Even as the Maharashtra government has decided to extend export subsidy of Rs 5 per litre to dairies and Rs 50 per kg to milk powder till January 19, 2019, the dairy sector does not seem to be happy with the decision.
Even as the Maharashtra government has decided to extend export subsidy of Rs 5 per litre to dairies and Rs 50 per kg to milk powder till January 19, 2019, the dairy sector does not seem to be happy with the decision. The scheme was to be implemented till October 31, 2018. However, due to drought conditions, the government has decided to extend it till January 19, 2019, and an ordinance has been issued.
A meeting of the Working Committee had been convened on November 22 in Pune to discuss the extension, said Vinayakrao Patil, chairman, Private and Co-operative Welfare Milk Producers Federation Action Committee. A move would be taken if the subsidy is acceptable to all stakeholders, he said. According to Prakash Kutwal, secretary of the Action Committee, the government has given subsidy to dairies for 50 days.
“Around Rs 80 crore worth subsidy from September 20, 2018, is still pending with the government. Dairies, however, have gone ahead and made payments to dairy farmers and both cooperative and private dairies have used up all their money and are in financial crunch. The government should directly deposit subsidy into farmer accounts,” he said.
Earlier, the issue was that the government did not have the requisite data on dairy farmers. However, the dairies have worked on this and have provided the necessary data to the government, he said.
Moreover, as the government excludes milk pouches from the subsidy scheme, there is a lot of confusion in the market and the government should declare an overall subsidy of Rs 3 per litre to all, Kutwal said, adding the government should not delay the subsidy amount since the sector is hit and in financial distress.
The state government had taken a decision some months ago to provide subsidy of `5 per for every litre of milk to co-operative and private producers to convert it into milk powder. To provide the subsidy in a transparent manner, the authorities have also asked for bank account details of dairy farmers so that the amount can be transferred directly to them.