Maharashtra govt sets up Milk Price Stabilisation Fund for co-op dairies

The Maharashtra government today issued a Government Resolution to create a Milk Price Stabilisation Fund. Dairies from the co-operative sector will have to contribute to this fund.

Unlike their counterparts in Gujarat who get remunerative price for milk thanks to Amul and those in Karnataka who get subsidy from state government, Maharashtra milk farmers have been incurring heavy losses for close to a year.

Against government announced floor price of Rs 27/litre, farmers have been getting Rs 17/litre.


As farmers had agitated by distributing free milk, state government had announced subsidy for production of milk powder. However, it didn’t help to improve producer prices.

As per the new GR, the co-operative dairies will have to deposit a “specified reasonable amount” from the additional income they earn during the lean period that ranges from April to September.

The state government wants dairies to use the money from Fund to pay the difference between floor price and market price, when producer prices are subdued during flush period that ranges between October to March.