Nestle, the biggest buyer of milk in Punjab, has slashed milk procurement price from farmers in Punjab. From Rs 355 per kg of fat, Nestle India has brought the procurement prices down to Rs 340 per kg of fat in a fortnight. The reason being cited is an oversupply of milk in the past few days and the fall in prices of milk fat and powder
Other players like Wockhardt and GlaxoSmithKline are expected to follow suit. Both the private and cooperative dairies have been procuring over 30 lakh litre milk per day from Haryana and Rajasthan. Introduction of entry tax of 5% on milk is reducing the margins of companies and hence companies are reducing the farmer’s rates.
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