The Price Revision of Milma milk& Milk Products

In continuation of my Blog on the subject dt 12/14th of April 2014. In my Blog it has been discussed about the justification for upward revision of Prices. The price revision is looked into when the Union submit their proposal to revise with a view to helping the Milk Farmers who produce& supply milk to the Milma Organisations.usually the price is increased when the production is reduced & the Farmers find cattle feed price goes up in the market.also when fuel price increased ,the price of milk products revised upward as a lot of Milk is purchased from Other States also. This being so ,the question of upward revision should not arise when the production of Milk is increased.this is so because the farmers get more money& other benefits when production goes up. 2 days back,the Chairman of the Milma claimed that there is tremendous increase in the production of Milk by farmers in all the areas especially the Malabar Area. If what he said is taken into account,the price of Milk should be revised downwards& not upwards.similarly as the Production by farmers increased the procurement from other States should be proportionately reduced to achieve economy in the expenditure on fuel required to procure. The price of cattle feed& fuel price are the basic factors considered for price revision upwards. There is however no system existing to assess the expenses of different Farmers at different places.in some places in the rural area the cattle are not exclusively fed by means of Cattlefeeds purchased& are instead fed by allowing the cattle to roam in the villages to fetch fresh Green grass as their food.in fact the most favorite feed for cattle is Grass.it is also free in villages. Recently there was decrease in the fuel prices. In view of increased production by farmers & decrease in fuel prices,what should be done now is the revision down wards& reduction in Procurement from other states. If this is done the prices can be reduced marginally especially in view of the Chairman's claim that the production has increased& the illness affecting the cattle also decreased In other words,there is no justification at all for the price increase& instead there is every scope now to reduce the price& to proportionately stop procurement from Other states. The yard stick for revision upwards should also be reviewed in order to include the changes in the reduction of prices of procurement from outside due to increased production in the domestic section & reduction in fuel prices. In any case an increase in the price can not be justified. Sreedharan Mundanat 29th April2014, 06-10Hrs(IST)