The state's leading dairy cooperative, Gokul, has raised the price of full cream milk by Rs 2 per litre in all centres, including Mumbai and Pune, from August 1.
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The revised rate in Mumbai is Rs 66 per litre, up from Rs 64.

This is the brand’s third hike in 15 months.

A senior officer of the Kolhapur Zilla Sahakari Dudh Utpadak Sangh which owns Gokul, said, “The rates of other varieties like cow milk, standardised milk and toned milk remain unchanged. We have increased the purchase price that we pay to milk farmers by Rs 2 per litre, and relayed this increase to consumers.”

The purchase price of cow milk will go up by one rupee per litre.

The officer said the MRP revision was also driven by the rising cost of raw material used to manufacture cattle feed. “Moreover, demand for milk-based items has surpassed supply since the market opened up after the lockdown. As hotels and businesses resumed functioning, there was a vast spurt in demand for ice cream, butter, cheese, buttermilk and curd which manufacturers are not able to meet. Plus the effect of global warming is visible in states where buffalo milk is produced, like Rajasthan and Gujarat. There is a certain shortage.

Procurement has fallen as a result. This demand-supply mismatch has also caused prices to rise,” he added.

So far Gokul has not raised the MRP of curd, lassi and buttermilk in the wake of the Centre’s imposition of 5% GST on these items, but a hike may be imminent. The officer said, “We will soon take a decision.”

Vishwas Patil, president of Gokul Dairy, said in Kolhapur that the new rates will be implemented from Monday. “Due to an increase in the cost of animal feed, dairy producers are finding it difficult to afford cattle farming. Therefore, the board of directors decided to increase the purchase price of buffalo and cow milk to encourage an increase in milk production. Accordingly, the selling price of buffalo milk has also been increased. Around 5.5 lakh dairy farmers in the district will get a benefit of Rs 4.5 crore every month,” said Patil.

This as-told-to essay is based on a conversation with Simmy Decker, 21, a health policy research assistant in Boston. The following has been edited for length and clarity.

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