Transparency in Milk Procurement: Amul’s Model vs. Farmers' Demands
In the Northern Capital Region (NCR), the dairy market is set for a change. Amul, a leading player in the market, will increase the price of Amul Gold and Amul Taaza by Rs 2 to Rs 55 per litre and Rs 44 per litre respectively. Coincidentally, cow milk will also see a rise, from Rs 42 to Rs 44 per litre. These adjustments reflect the cost pressures faced by consumers but also highlight the broader issues surrounding the procurement practices of dairies.
Why Limit Inquiry to One Agency?
The focus on Amul, an outlier in many respects, as the sole example of dairy procurement practices is shortsighted. The questions raised here go beyond Amul's strategy and touch upon the practices of all dairy players, both organized and unorganized.
The challenge lies in understanding the farm gate prices paid by all dairy players. This includes both the maximum and minimum prices, along with the standard deviation of these prices over time. Similar to the tracking of stock market prices for individual companies, farmers should have access to real-time information about the prices they receive for their milk.
The Role of State Governments
The question of state government's responsibility in this matter cannot be ignored. Agricultural and dairy sectors fall under the purview of the Indian Constitution and should therefore be a priority for state governments. The absence of basic data on farm gate prices highlights a fundamental failure in the system. Without this transparency, farmers are left in the dark about fair prices.
Moreover, the reliance on declared prices by various dairies should be scrutinized. What is more important is the actual price paid to farmers and a detailed analysis of these prices. Farmers need to be informed and empowered to demand better pricing.
Collective Action by Cooperatives
Members of the cooperative need to push for transparency collectively. Blind acceptance of the prices offered by cooperatives is detrimental to their welfare. It is crucial for the members to question, negotiate, and demand fair prices. When farmers start asking and advocating for transparency, the sector as a whole will begin to flourish.
The day cooperative members start demanding the actual prices, the dairy sector will see a transformation. Until then, the current state of affairs will continue to cause disparity and dissatisfaction among farmers.
Conclusion
For the dairy industry to thrive, transparency and fair pricing are paramount. The ongoing increase in milk prices by Amul underscores the need for a system that provides farmers with the information they need to negotiate better deals. State governments must take action to ensure that farmers are not left behind and that the dairy sector operates on a transparent and fair platform.
By advocating for these changes, farmers can reclaim their rightful place in the industry and ensure a sustainable future for all stakeholders.