Of late, the cooperative dairy society in Telengana are inconspicuously providing the alliances and opening up milk prices as such. Despite this factor, the farmers who are involved in this sector are being satisfied furthermost. This leads to a strenuous situation on part of private dairies for matching the retail prices and profit margins respectively. A part of the private firms had suspected the role of this cooperative as a foul play for incapacitating the private sector. Due to the phenomenon of intense price war in this region by the cooperatives, the prices have declined to Rs.33 per liter by majority of the private players in the last couple of months.
According to the statistical data, India has been the world’s largest dairy market accounting size of $60 billion which is 15% of global production of milk in terms of value. The dairy industry in India has shown a significant growth at 10-12% annually where the organized players have shown 1520% growth annually in the past few years. Undeterred by, the cooperative dairies in India have shown a symbolic pace by sticking to this industry from 2001 to 2011. As such the MD of the Black River Asset Management- based Dodla Dairy; D Sunil Reddy was very much concerned about the private dairy players which may lose its market share apart from the trouble of incision in its profitability.
He further added the fact that the dairy cooperatives in India which are heavily financed by their respected State Governments are not only in a position to pay the industry level remuneration to their farmers, but also aggressively can cut off their selling prices. It has been found that near about 15 million Indian farmers are being involved in 1.62 lakh cooperative societies which had been organized into 22 state dairy cooperatives. The total milk being procured out from these cooperatives is 12 million tonnes. Also the gigantic cooperatives which are known to exist dispenses cattle feed, veterinary services and other miscellaneous services at a very reasonable price to the dairy farmers.
In a word, it may be concluded that, the cooperative dairy society in Telengana are inconspicuously providing the alliances and opening up milk prices as such. Despite this factor, the farmers who are involved in this sector are being satisfied furthermost. According to the statistical data, India has been the world’s largest dairy market accounting size of $60 billion which is 15% of global production of milk in terms of value. He further added the fact that the cooperatives in India which are heavily financed by their respected State Governments is not only in a position to pay the industry level remuneration to the farmers, but also aggressively cut off selling prices.
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