Milk company chief wants to pay dairy farmers more than market price and will pay more in dividends. Dairy farmers will also have to cut their losses because of the increases in demand from dairy products.
If the government gives milk farmers higher incentives, they may choose to buy cows, the analysts said.
“They will raise prices and the amount of money they pay will change to account for the increase in the demand for milk,” the economists said.
If it raises the price of milk, dairy farmers will have to pay for the higher cost of milk, too. The new law has raised the price of milk to the tune of Rs 1.33 per kg. “As the price of milk goes up, people will feel a change (in the purchasing power of their money),” the analysts said.
“Dairy farmers will not be able to cope with this. Since they will not be able to buy any cow if they get the subsi공주출장마사지dy they currently receive, they will have to find a cheaper alternative, either buying from another farmer or from local farmers,” the analysts said.
Kiran Nair, a memb온 카지노er of the All India Dairy Farmers’ Congress (AAFC) told PTI that they are “shocked”. He said they are in the “sweet spot” of not being able to raise prices. They might need to consider other ways to pay off the money they have borrowed from the government, he said.
The milk price hike has hurt the dairy sector, farmers and consumers. “Our milk farmers are facing a lot of stress from a steep increase in prices. They have been selling at around Rs 3 per kg. We already make around 80 kg/ha from the milk we produce here, but the prices are going up by up to 15% every year,” Shashi Patra, general secretary, AAFC온라인 카지노, said.
The government had announced on July 8, 2012, that it is setting a four-month auction for farmers’ rights to sell their crops at a premium to the market price, which will cover cost of production but also include farm distress. The government is expected to make some grants to farmers to get more profit. The government says farmers will have to raise prices to keep up with the cost of production.
If the government does not give farmers high-yield and high-cost milks, then farmers will have to sell the excess milk as it will be too cheap and will become surplus, the experts added.