Why in India the milk is washed away

Dairy farmers in Maharashtra, a state in India located in the west-central part of the country, have been protesting since the beginning of this week. The reason for the protest is the milk price, which has been significantly reduced. Several farmers' organizations have taken to the streets and dairy farmers are washing away their milk in protest. The milk supply to urban areas will also be stopped.

Milk price dropped 10 cents 
The falling milk price is a result of the measures taken during the corona crisis. Before the virus broke out worldwide, the Indian milk price was around 30 euro cents per liter. Due to the loss of sales opportunities and the closure of catering establishments, the demand for dairy products has decreased significantly.

Normally, dairy consumption in India increases around this time of year. This is in connection with weddings and festivals that benefit the consumption of dairy, but due to the corona crisis this is not the case. The milk price has now dropped to approximately 20 cents per liter.

Requirements of dairy farmers 
The dairy farmers say they cannot cover their costs with this low milk price and demand a milk price of at least 30 cents per liter. To achieve this, protesting organizations are asking the government for a subsidy of approximately 10 cents per liter of milk that should go directly to the dairy farmer. The government of Karnataka, a state in the south of the country, has a scheme whereby about 7 cents per liter is paid directly into the bills of milk suppliers. The dairy farmers in Maharashtra are asking for a similar arrangement through this protest.

Large stocks of milk powder
Dairies are also asking for an export subsidy of 60 cents per kilo for the export of milk powder. This last demand arises from the irritation of the dairy sector regarding the decision of the Indian government to import 10.000 tons of milk powder, while the country itself has enormous stocks.

Large-scale dairy factories have converted surplus milk, resulting from a drop in demand due to the corona crisis, into milk powder. The protesting organizations have therefore demanded that the import of milk powder be stopped immediately. With the export subsidy, the dairies say they can reduce their milk powder stock more quickly and thus offer dairy farmers a better price.

According to the government, the requirement for such subsidy amounts is not realistic. They believe that providing such high amounts would not be possible now that the state is reeling under financial constraints.

Click here for a video of the demonstrations.