Maharashtra will give a subsidy of Rs 3 per litre to milk cooperatives that produce milk powder, reports Times of India. The decision will cost the state exchequer Rs 32 crore.
A fall in milk rates in both national and international markets had led to dairy cooperatives not giving dairy farmers a reasonable rate.
There are 21 private and 7 co-operatives in the state that produce milk powder. In 2012-13, Maharashtra had given a subsidy of Rs 2 to the industry.
Some farmer leaders have hailed the government decision but with qualification.
