Hindustan Times reports Uttar Pradesh Pradeshik Milk Cooperative Federation (Parag) has urged the state government to help it get bank loans of Rs 96 crore for paying dairy farmers.
The move comes on the heels of the Gujarat government helping Amul with a Rs 300 crore package.
Uttar Pradesh milk cooperative federation is buying milk from farmers at a high rate of Rs 32 to Rs 38 per litre, selling it in the market at Rs 52 per litre.
Sources say the UP federation has 1,200 tonnes of milk powder and 500 tonnes of butter stocked with it. However, over two lakh dairy farmers are dependent on the federation. With the loan sanctioned, the federation will immediately clear all the dues of milk farmers, sources add.
Meanwhile, there are reports that the country’s largest state will invest nearly 15, 000 crore rupees on dairy development in the next couple of years. The state easily stands out with around 163.7 million tonnes of milk production.