Maharashtra is among the highest milk producing states in the country. (Express Archive) Maharashtra is among the highest milk producing states in the country. (Express Archive)

THE state Tuesday said for the next two months, it will provide subsidy of Rs 5 per litre to dairies for export of milk and Rs 50 per kg to milk producers for export of milk powder. After reviewing the impact, it will decide on whether to continue with the subsidy. This was decided at an all-party meeting convened by Chief Minister Devendra Fadnavis in Nagpur to discuss the problems faced by dairy farmers. With this, the state has adopted the ‘Gujarat model’ to help dairy farmers earn higher prices and also ensure that milk federations are not incurring losses.

Last year, the state had made it mandatory for the milk federations to pay a minimum of Rs 27 per litre on milk procured from dairy farmers across Maharashtra. But the milk federations had not been able to pay more than Rs 17 to 18 per litre to dairy farmers. At the meeting, it was also decided that milk and milk powder would be provided in the meals provided under the schemes of the school education, women and child welfare and tribal development departments.

Maharashtra is among the highest milk producing states in the country. A few months ago, the government had announced Rs 3 per kg subsidy on milk powder. But private milk producers had argued that it was not enough as prices of milk powder had crashed globally. Meanwhile, the state government also announced that it would recommend to the Centre that GST on butter and ghee be reduced. The two products attract a GST rate of 12 per cent at present.

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