Private dairies have once again started doing what they are good at - fleecing farmers and enriching themselves.
In MP and Rajasthan, where private dairy owners have been quite active in the absence of cooperative dairies in certain areas, milk prices at the collection centers are said to have crashed from Rs 38 a liter to Rs 24 a liter.
This has come as a double whammy for farmers whose livelihood was stolen by an artificial crash in pulses and oilseeds prices manipulated by big traders.
Both states are scheduled to go through assembly elections this year.
Madhya Pradesh Kisan Sabha General Secretary Ashok Tiwari says "There have been protests by farmers in Morena as well as in several parts of Bhind and Gwalior districts since December 20 as they are getting a lower price for the milk that they supply to collection centers."
RS Sodhi, Managing Director, Gujarat Co-operative Milk Marketing Federation, said that milk purchase prices have been falling drastically in many States since last month.
"As private dairies have stopped buying milk, milk cooperative societies in States such as Madhya Pradesh and Rajasthan are getting 20-30 percent more than what they normally procure," he said.
The commencement of flush season since the onset of winter has aggravated the situation, with farmers bringing more milk to collection centers.
As a result, cooperative societies in many of these States are flooded with milk. "Even though co-operative societies haven't reduced purchase prices much, they are not in a position to buy more milk from farmers," Sodhi said.