Milkfed cashes on price hike by other milk suppliers

Shimla: Enjoying the price differential of Rs 4 per liter over other suppliers, demand for local milk supplier Milkfed has doubled in a week and is likely to increase as it ropes in more vendors in its network.

“The demand for milk has already doubled,” says Mohan Joshi, president of Milkfed cooperative. As we tie up with more vendors, the demand is expected to go up further,” he added.

With Verka and Vita brand of milk priced at Rs 32 per liter and commissions to retail vendors not having been increased for more than a decade, the retailers are a miffed lot.

“The increased price of milk is hurting consumers and where milk from Milkfed is priced at Rs 28 per liter, many are taking to it because of the price difference,” says Arjun Thakur, a grocery store owner.

“Besides the price difference,” he added, “refrigeration costs of storing milk have gone up but the suppliers are unwilling to increase our commissions.”

The milk retailers had even resorted to a day’s strike, a fortnight ago, in order to press for raising retail commissions on milk sales but the issue has not been resolved.

Meanwhile, Milkfed (Himachal Pradesh State Co-op Milk Producers’ Federation) has tied up with the incensed retailers to promote sale of the milk produced within the state.

The tie up with retailers has helped to boost our sales,” said Joshi.

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