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Market News
Milk producer companies' milk procurement to jump 3-fold to Rs 18,000 cr in value terms in 5 years.
Sep 16, 2022
Milk procurement by milk producer companies, which are owned by farmers, is estimated to jump nearly 3-fold and touch Rs 18,000 crore in value terms in the next five years, according to NDDB.
The National Dairy Development Board (NDDB) Chairman Meenesh Shah said the milk producer companies procured milk worth Rs 5,575 crore last fiscal year and the same is set to triple and reach over Rs 18,000 crore in the next five years.
He also assured that NDDB through its arm NDDB Dairy Services will facilitate setting up of more milk producer companies across the country, the board said in a statement.
Shah was addressing the IDF World Dairy Summit 2022 being held at Greater Noida, Uttar Pradesh during September 12-15.
'The startup concept may have come recently but the milk producer companies are the real startups working since long,' he said.
Shah said, about 750,000 farmers, including over 70 per cent women, have created about 20 producer-owned entities.
'Ever since the inception of the first farmers' organization, the number as of now has swelled to 20. Altogether the farmer members have been paid about a staggering Rs 27,500 crore till last fiscal (2021-2022) in lieu of the milk supplied by them to their respective organization,' Shah said.
He also launched value-added dairy products by some of these milk producer companies.
As many as 18 of these 20 farmers-owned organisations have become operational and procured over 40 lakh liters of milk per day at the end of last fiscal. The milk procurement by milk producer companies is expected to reach 100 lakh litres per day in the next five years.
These farmer organisations, plough back up to 85 per cent of sales proceeds to members, including over 5 lakh female members.
The ownership of 12 of these 18 operational entities are fully with women members.
Shreeja Milk Producer Company has the distinction of being the first and world's largest all-women farmer organization at the foothills of holy Balaji temple in Tirupati, the statement said.
economictimes.indiatimes.com
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