Loksatta Party demands that milk pricing should be left to cooperatives/producers themselves
Thursday, October 30th, 2014 @ 11:19AM
Tamil Nadu government has raised milk purchase price by Rs 5 for cow milk and Rs 4 for buffalo milk and sale price by Rs 10.
Government interfering in business decisions leads to less distraction from its more important duties. TN government has ignored its promise not to interfere in milk pricing last year when Karnataka milk producers cooperative raised prices.
TN comprises of 5.42 % of Indian population but it produces only 5.29 % of its milk. There is a need to increase the yield. When yield increases prices automatically will fall. Artificially keeping the prices down leads to slower increase in yield and also results in jump in prices instead of a smooth increase as per inflation & demand-availability.
Only when producers(farmers) get more money they will invest it and find ways to improve yield and quality. If government refrains from fixing milk prices, the price rise will not be shockingly steep and rise or fall in milk prices will be determined by market forces.Due to these reasons Loksatta demands that TN govt take a long term view and refrain from interfering in milk prices.