Financial Daily from THE HINDU group of publications
Saturday, Sep 07, 2002

News
Features
Stocks
Port Info
Archives

Group Sites

Agri-Biz & Commodities - Dairy & Dairy Products


Kerala milk producers hit by cheap imports

G.K. Nair

KOCHI, Sept. 6

MILK producers in Kerala are in the grip of a major crisis following the flow of large quantity of milk from outside the State at lower prices.

According to a survey, the State produces 20.61 lakh tonnes of milk per annum. The production, according to market sources, is insufficient to meet the demand of the State's population.

As a result, Kerala has become a major market for milk produced in neighbouring States.

Around 60 per cent of the daily demand of milk is met by supplies from Tamil Nadu.

Mushrooming of milk processing and marketing companies has resulted in tough competition leading to cut in prices.

Thus, availability of milk at low prices from other States has created a crisis for the milk producers in the State, farmers said.

A dairy expert told Business Line that the only solution to the crisis was production of "good and pure milk'', by which the Kerala milk producers could compete and recapture the market.

"The milk should be pure without any residue of antibiotics. And to achieve this, health cards should be introduced for cows and buffaloes."

Meanwhile, Mr Mannar Satheesh, State Secretary of Karshaka Morcha, said that development of this sector had not made much progress though several programmes had been introduced in the past.

"Modern methods based on advanced technology are yet to be implemented here."

In 1962, a Dairy Development Board was created followed by the milk revolution in 1971.

Then the Livestock Development and Milk Marketing Board for milk procurement and marketing was set up, followed by the Kerala Co-operative Milk Marketing Federation.

"But all these have failed to save the dairy sector and the farmers,'' Mr Satheesh said.

One of the major problems being encountered is the non-availability of modern facilities to process and stock the entire milk produced during the peak season (in the rainy months).

As a result, during these months, not only are restrictions imposed on the quantity procured but there is a cut in the prices by the co-operatives.

The State has over 2,972 milk marketing societies.

According to Mr Satheesh, political interference has often made their functioning unfavourable to the development of the sector.

"When the societies run by NGOs procure milk at Rs 10 per litre from the farmers, the Government-run co-operatives procured at a lower rate."

On the other hand, he added, when other States were encouraging the farmers by providing subsidy for cattle feed, in Kerala they were being discouraged with taxes.

Kerala requires 68.5 lakh tonnes of cattle fodder, of which only 40 tonnes are available within the State. "Non-availability of land and improved variety of fodder grass have become major impediments."

Besides taking steps to strengthen the dairy sector in the State, the Government should impose tax on the milk brought from other States apart from taking measures to ensure the quality.

According to him, there are reports of the presence of chemicals such as calcium carbonate in the milk bought from other States. "There should be facilities to check the quality of imported milk."

It should also be made mandatory for milk processors and distributors in Kerala to procure a certain percentage of milk from local farmers, he added.

Send this article to Friends by E-Mail

Stories in this Section
Incubator facility soon at Icrisat


`Hatcheries must be brought under MPEDA control'
Rubber firm on poor arrivals
July tea output declines
Kerala milk producers hit by cheap imports
Global cotton prices seen hit
Govt mulling futures in crude palm oil — Curbs to go on forward trading in 81 items
Vanaspati producers for monitoring Nepal imports
Cardamom output seen down 20-40 pc


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright © 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line