Shutdown of dairy farms points to crisis

Vishav Bharti

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Three months ago, a group of dairy farmers handed over a list of 150-odd names along with phone numbers to Cooperation Minister Sukhjinder Singh Randhawa in Chandigarh and requested him to do something about Punjab’s ‘new crisis’. The list pertained to the owners of dairy farms which were shut down in Mohali district alone in the recent past. The farmers were red-flagging the problems plaguing dairy farming in the state.

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Though the government is citing reasons such as the export of buffaloes to other states and the slaughter of male animals for the steep decline, dairy farmers are not buying this argument. They are saying that the government is turning a blind eye to their plight. “The only reason for the drop in the buffalo population is that dairy farming as a profession has become unviable. In the area falling under Verka Milk Plant, Mohali, we have identified 151 dairy farms which were shut down due to heavy losses,” says Mohali-based former chairman of Mohali Milk Plant Parminder Singh Chalaki, who led the delegation of farmers.

Chalaki says the number may be much higher as these farms were the big ones which they could identify. “This was the number in an area of just one district. Now imagine the situation in the entire state,” he laments.

The situation is such that a large number of dairy farmers who took loans from public banks have defaulted on the payments. A senior functionary of the state’s Department of Animal Husbandry says, “Till a few years ago, a certain bank in Chandigarh was known for giving loans to new dairy farmers. But most of them defaulted on the payments. Now, if someone asks for a loan for a dairy farm from this bank, the staff immediately show them the door.”

“Dry fodder is available for Rs 800 per quintal; corn costs Rs 2,400/quintal. Has the price of milk increased in that proportion?” asks Chalaki.

The dairy farmers draw a parallel with Punjab’s agrarian crisis. “The input cost has increased, but the milk rates have not risen in the same proportion,” says Daljit Singh Sadarpura, president of the Progressive Dairy Farmers’ Association, Punjab.

Besides a steep hike in input cost, Sadarpura says, the rise of cow vigilante groups has brought the business to virtual closure. “Earlier, dairy farmers from across the country would throng Punjab to get the best crossbred cows and buffaloes. For the past five years, the vigilante groups have virtually made it impossible to take cattle outside the state without paying them hefty amounts,” he says.

Taking note of the situation, Milkfed recently increased the rates of milk, but the farmers say the hike is not enough. Generally, the demand for milk declines after Diwali, so the price rise in itself in the winter points towards a crisis.

Inderjit Singh, Director, Dairy Development Board, says the increase in milk prices has brought great relief to the dairy farmers.

However, Chalaki calls it a cosmetic relief. “Just like Goa, Haryana, Rajasthan, Kerala and West Bengal, the Punjab Government should give Rs 6 as support price on milk. The farmers are also demanding the installation of silage-making plants and easy loans. They have also demanded that more slaughter houses should be opened in Punjab. “We need a long-time policy, not these temporary measures,” he says.