Explaining the reduction in the milk procurement price, Gujarat based SUMUL’s MD S.V.Chaudhari said that it is a routine practice in dairy industries that in flush season of milk, the raw milk prices go down.
Chaudhari who is presently in the UK wrote in a whatsapp reply, “It’s a routine process in dairy industries. In flush season of milk, we are always reducing the raw milk price but for the last 17th months we have not reduced and given the highest rate to dairy cooperatives of Gujarat”.
“Even today we are paying more than others despite the fact that milk procurement in India as well as in Gujarat is 18% higher than in the previous year. The stock of powder and butter is as high, as you know but there is no pricing of both in the market. This explains why we have reduced the price of milk. When there is improvement the market conditions, we raise the same”, he added in his message sent to Indian Cooperative.
Sumul Dairy is one of the dairies of Gujarat associated with Amul Brand. The procurement price of buffalo milk has been reduced by Rs 25 per kg fat and the new rate was Rs 625 per kg and cow milk has been reduced by Rs 30 per kg fat taking down the new price to Rs 580 per kg fat.
Sumul Dairy on an average procures about 13 lakh kg of milk and average sale is around 2 million litre per day.
Readers would recall that recently Chief Minister of Gujarat Vijay Rupani inaugurated Sumul’s 200MT capacity nutritive food plant built at a cost of Rs 55 crore at Chalthan, Surat.