Maharashtra milk crisis EXPLAINED: Why dairy farmers are dumping milk on roads, blocking supply

Even as Mumbai remains on top in list of cities in India with highest number of coronavirus cases, Maharashtra faces a new kind of crisis. The state is going through a milk price crisis, this time caused by the fallout of the COVID-19 pandemic. This is why dairy farmers in the state have been forced to come down on streets and are dumping milk on roads while blocking the supply of milk to urban areas. 

The agitators along with members of the Raju Shetti- led Swambhimani Shetkari Sanghatana, a farmers' organisation, stopped milk tankers and emptied them on the Pune-Bengaluru highway passing the two districts.

Why dairy farmers are agitating?

As the country was hit by COVID-19 pandemic, the dairies within the state started cutting the prices they pay to farmers to procure milk, starting April end. A similar situation was also seen in Tamil Nadu and Karnataka dairies. In Mahrashtra, farmers have been subject to a dramatic price reduction for 3.5 per cent fat milk, and 8.5 per cent SNF (solid-not-fat) milk from Rs 30 per liter, to between Rs 17 and 22.5 per liter.

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Talking to PTI, Shetti said they are demanding an increase in milk procurement prices by Rs 5 per litre and the benefit to be directly deposited into the accounts of milk producers.

"We are also demanding an export subsidy of Rs 30 for milk producers and cancellation of the Goods and Services Tax (GST) levied on milk products," he said, while adding that the milk business in the state has been affected "because of the policies of the central government".

The Opposition BJP has now launched a state-wide agitation against the drop in prices, with BJP leaders submitting demands for a Rs 10 per litre subsidy for dairy farmers, and a Rs 50 per kg subsidy for milk powder, while also warning that if their demands are not met, further agitation will ensue from August 1 onwards.

"Since early morning, members of the Swabhimani Shetkari Sanghatana have been agitating in the region (Sangli and Kolhapur) by stopping the milk tankers and spilling milk on roads," he added.