NE NEWS SERVICE
AHMEDABAD, ANAND JULY 16
The Gujarat government on Friday announced financial assistance to the Gujarat Cooperative Milk Marketing Federation (GCMMF) which owns the ”Amul” brand to offset losses incurred in the export of skimmed milk powder. Amul Federation Chairman Shamalbhai Patel has expressed the farmers’ gratitude to the Gujarat Government for heeding to its demand, an Amul release said..
Very timely third time help by Govt of Gujarat by announcing a covid incentive scheme for the export of Skimmed milk powder of Rs 150 cr @vijayrupanibjp @Nitinbhai_Patel @Amul_Coop pic.twitter.com/Y401hGGbVP https://t.co/NXSdOz2k7o
— R S Sodhi (@Rssamul) July 16, 2021
The state government has decided to provide an assistance of a maximum of Rs 50 per kg for the export of skimmed milk powder from July 1 to December 31 with a ceiling of Rs 150 crore, said a release from the Chief Minister’s Office. The government has also decided to increase the freight on board (FOB) price for skimmed milk powder by Rs 20 per kg to Rs 200 per kg from the existing Rs 180 per kg given to the GCMMF, it said.
The decision was taken following a demand by milk producers’ unions, it said. If the FOB on skimmed milk powder increases during this period, the export assistance will be reduced accordingly. If, for example, FOB price increases to Rs 210, the assistance will be reduced to Rs 40 from Rs 50 per kg, the government said.
The export assistance, however, will remain the same if the FOB decreases. Managing Director of the GCMMF R S Sodhi said this was the third time the Gujarat government has provided such assistance which will benefit 3.6 million farmers. The GCMMF will be no longer compelled to reduce the farm gate price of milk due to lower returns on skimmed milk powder in the domestic or export markets against its production cost of Rs 250 per kg, Sodhi said.
“We would no longer be under compulsion to reduce the price paid to the farmers who are already under stress (due to the COVID-19 pandemic),” he said.
Shamalbhai B Patel, Chairman, Amul Federation has conveyed heartful thanks to the Government of Gujarat for taking this decision in favour of 36 lakhs milk producer members. He Said Rs. 50 per Kg Covid assistance for export of SMP is remarkable and a very timely & sensitive decision. He conveyed his sincere thanks and gratitude to Chief Minister Vijaybhai Rupani, and Deputy Chief Minister Nitinbhai Patel.
He also said the move by the Gujarat government would maintain the price of skimmed milk powder across India and stop Gujarat milk producers from losing an estimated Rs 800 to Rs 1,000 crore. He further said that the step taken by the Government of Gujarat would help member unions to maintain the procurement price.
During the last financial year in spite of all difficulties, member unions continued milk procurement. During the Covid pandemic most of the private players, hotel and restaurant were closed which adversely impacted milk consumption. In such situation also, member unions of Gujarat procured around 35 to 40 lakhs liters more milk per day compared to last year and member unions of Gujarat have not reduced milk procurement price paid to milk producer members.
