Accumulation of skimmed milk powder at the Erode Aavin unit is a cause for extreme worry for the over 700 cooperative societies.
Now that milk supply to Kerala has been stopped post Onam festival season, the huge stock of milk has to necessarily be converted into powder, causing further accumulation to the already bloated stock.
Converted
Excess milk produce in the neighbouring districts are also converted into SMP at the Aavin unit in Erode.
Though the exact quantum was not disclosed by officials, milk cooperative societies apprehend that hundreds of tonnes of SMP have been stocked.
According to representatives of the cooperative societies, the pace of conversion of milk into other value-added products has not picked up.
Also, the marketing network of Aavin was simply not enough to cater to even existing demand, a president of a cooperative society lamented.
Global price of SMP that crashed by 100 percentage point last year to less than Rs. 150 per kilogram, due to abolition of European Union milk quota system, has not recovered as per expectations, and hence, Aavin is not in a position to procure the entire produce of the cooperative societies. Also, its handling capacity is limited.
The winter months ahead will be tough for producers since the production will be more than the usual level by 20 to 30 per cent, and they will be constrained to sell the same to private players for throwaway prices.
