Panel urges review of milk pricing for farmers' benefit

A parliamentary panel has urged the government to review how milk prices are set by procurement agencies. The aim is to ensure that dairy farmers receive better financial returns. The panel noted that while milk prices have increased, they have not kept pace with overall food inflation. The Standing Committee on Agriculture, Animal Husbandry, and Food Processing stated that milk price increase has been lower than the food inflation rate. In a recent report, the committee indicated that milk inflation was reported at only 1.6 percent, compared to about 6 percent for food products. The committee is concerned that many farmers do not earn fair prices for their milk due to widespread adulteration of milk products. This practice not only harms farmers' income but also poses health risks for consumers. It is important for these farmers, who rely on milk sales for their livelihood, to receive fair compensation. The report highlighted that the price farmers receive is influenced by market conditions set by cooperatives and private dairies. Although around 70-80 percent of the consumer price is returned to farmers, the differences in retail pricing and procurement costs can be significant. The panel also addressed issues with the Delhi Milk Scheme (DMS). It questioned why this body, which generates revenue for the government, had its license suspended by the food regulator FSSAI. The committee has requested a detailed explanation of the suspension, along with measures taken to comply with regulatory standards and plans for its revival. The DMS, established in 1959, plays a key role in dairy production in Delhi.