Amul producers warn govt of strike

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The Gujarat Co-operative Milk Marketing Federation, or GCMMF, which makes Amul products, will oppose restrictions on milk powder exports, reports CNBC-TV18.

 

There is trouble brewing in Amul milk kingdom. The GCMMF has told the government that it might go on strike to oppose restrictions on the export of milk powder. The government had slapped a six-month restriction from the February 1. Even though the six-month period ends this month, the GCMMF believes the government might extend it. So, GCMMF will oppose this.

 

"We will go to the farmers and make them aware of the repercussions of this restriction. If necessary, we will go on strike on alternate days. The villages will know the government policy is not in favour of the farmers," said B M Vyas , MD, GCMMF.

 

The restriction came because milk-powder prices had risen. But GCMMF says there are other ways to control prices. It says that if restrictions must be enforced, then they should also be put on casseine, a byproduct of milk. That is because you need twice as much milk to make casseine, compared with milk powder.

 

"If prices rise, the government can decide a quota for export. They can also levy export duty, so that there is parity between prices in the domestic and international markets," said Vyas.

 

Milk powder is exported to Bangladesh, West Asia, Sri Lanka and the Philippines. The GCMMF says farmers might find it difficult to survive because of rising cattle-feed prices. That might make for trouble in the co-operative kingdom.