Milk Price Mechanism Under Scrutiny Amid Inflation Disparities

A parliamentary panel urges the government to review the pricing mechanism of milk by procurement agencies, as milk price hikes remain below food inflation, affecting farmers' earnings. The report also highlights concerns about milk adulteration and questions the suspension of the Delhi Milk Scheme's license by FSSAI.

A parliamentary panel has raised concerns about the current price-setting mechanisms employed by milk procurement agencies, urging the government to intervene. The panel's report states that while food inflation hovers around 6%, milk price increases were at just 1.6%, underscoring a disparity that fails to benefit dairy farmers.

The report from the Standing Committee on Agriculture, Animal Husbandry, and Food Processing highlights pervasive adulteration issues within the milk industry. While the wholesale price index for food reflects a significant increase, the slower rise in milk prices leaves many farmers struggling financially, given their reliance on milk sales.

The suspension of the Delhi Milk Scheme's (DMS) license by the Food Safety and Standards Authority of India (FSSAI) also came under scrutiny. The Committee called for detailed reasons behind this decision, urging the government to support DMS, which contributes substantially to government revenues. Established in 1959, DMS is integral to Delhi's retail milk market.

(With inputs from agencies.)