Dairies seek subsidy for milk products due to oversupply

PUNE/AHMEDABAD: Private dairies are in a fix as they cannot increase milk prices in an oversupplied market while there is no parity in exports.

As a result, they have started holding the government to ransom by demanding subsidy for tiding over the lows in a cyclical business.

Most of the private dairies are involved in the conversion of milk into butter, cheese, casein and milk powder and they export the products. However, they are sitting on huge stocks of milk products.