Amul ramps up milk supply to Maharashtra to bridge deficit after floods; Kerala eyes Karnataka for milk

Gujarat Cooperative Milk Marketing Federation (GCMMF), owner of the Amul brand, has ramped up its milk supply to Mumbai and other cities in Maharashtra to bridge the deficit due to the death of nearly 1,000 milch animals and an acute shortage of fodder due to the recent floods in the western parts of the state.

The floods in certain parts of Maharashtra, which lasted for nearly a week, caused severe damage to properties, standing crops and animal husbandry in the state.

Leading milk suppliers in Maharashtra, including Gokul and Warna, have faced a huge decline in daily procurement of milk from farmers in western Maharashtra. Disruption in transportation services also resulted in supply cuts to the cities like Mumbai and Pune, which have estimated daily consumption of 6 million litres and 2.5 million litres, respectively. The two cities depend on milk arrivals from many states, including Gujarat and Karnataka.

Meanwhile, Kerala, which needs 16 lakh litres per day (LLPD) of milk for consumption during Onam , may tap the cows in Karnataka this season. The state’s apex dairy co-operative, is in price parleys in Bengaluru with the dairies in Karnataka this week to ensure procurement contracts during the second week of September.

With Aavin, the lead dairy co-operative of neigbouring Tamil Nadu, hiking its milk price by Rs.6 per litre last week, Kerala has now only Karnataka in the logistic vicinity to feed its festival season milk appetite.

The Nandini brand of Karnataka Co-operative Milk Producers Federation sells about 35 LLPD and the rest of the dairy players sell about 10 LLPD milk. In 2018-2019, KMF had procured as much as 72.6 LLPD of milk. Given the surplus sales, Nandini brand can easily offer the lowest milk price in the country. However, it is only due to the seasonal demand spurt that Nandini’s milk glut has been emerging as the solution for MILMA’s procurement issue. Kerala’s average milk demand is only 13.5 LLPD. The toll on dairy sector this month is yet to be estimated.

Shekhar Ghosh is consulting editor, Indoasiancommodities.com. He has edited and written for publications like Business India, Business Standard, Business Today, Outlook and many other international publications. He can be reached at shekhar.ghosh@indoasiancommodities.in.

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