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Milk prices likely to go up again in Pune

Indian Express: Pune may be in for another round of hike in milk prices. Although milk cooperatives are yet to decide whether to pass on the recent rise in procurement price to consumers, some private dairies in Pune have quietly increased prices by Re 1 per litre, though those printed on the pouches remain unchanged.

The hike is being attributed to the higher milk procurement price. It was increased thrice this fiscal, the latest in November after the assembly elections. Though the Pune District Co-operative Milk Producers Federation (PDCMPF) is yet to take a decision, the likelihood of it following private diaries is not being ruled out.

In August 2009, after the state cabinet decision to increase milk procurement rates, dairy operators in Western Maharashtra had unanimously decided to hike price by Rs 2 a litre. Following this, in November, procurement price was again hiked by another rupee, which has led some milk operators to pass it on to consumers.

“There was a shortage of fodder, which is why the state government increased procurement rate by one rupee in November. Even though we preferred not to increase price immediately, we had to raise price by Re 1 a litre a few days back,” said Girish Chitale, proprietor of Chitale Dairy, which has a production plant in Bhilavdi in Sangli district.

Before the latest price hike, Chitale Dairy was selling cow milk at Rs 24 a litre and buffalo milk at Rs 29 a litre. The prices now are Rs 25 and Rs 30 respectively. “Summer is arriving soon and we hope procurement prices are not scaled up again by the government,” he said.

A senior official from the accounts section of the Maharashtra State Co-operative Milk Federation (Mahanand Dairy) said they were in no hurry to hike rates. “It is true that after August, the state government increased the price by Re 1. But there is no likelihood of co-operatives hiking rates soon,” he said.

The PDCMPF (Katraj Dairy), however, is yet to take a decision in this regard. Its chairman, Ramesh Bhujbal, said, “If the situations demands, we will have to consider the hike,” he said.

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