Saturday, December 1, 2012

Milk, ghee prices hiked

The state-owned Dairy Development Corporation (DDC) and private dairies have increased prices of fresh milk and ghee claiming that they have been incurring losses.  
Effective from tomorrow, milk is dearer by Rs 2 to Rs 50 per liter in the capital, whereas price of ghee by Rs 40 to Rs 550 per liter, according to the DDC. But, private dairies are yet undecided over increasing price of ghee.
The dairy farmers are not going to benefiting despite the hike in the price of milk as the DDC has not yet increased the procurement price of fresh milk. The DDC had last increased the procurement price of milk last January.
Regular load shedding has increased the operation cost, according to the dairies.
DDC has been incurring an annual loss of Rs 95 million. After the price hike, the loss will be now reduced to Rs 15 million, said the corporation that has been producing powdered milk from 80,000 liters of surplus fresh milk daily since August.
Out of the total some 300,000 litres is being procured from farmers and some 135,000 liters is supplied to the capital.
However, the dairy farmers have been demanded the government to provide them subsidy in insurance.

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