Maharashtra cabinet gives nod to Rs 5 per litre subsidy to milk producers

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The Maharashtra cabinet announced on Thursday to provide a subsidy of Rs 5 per liter for milk to farmers supplying their produce to both cooperative societies and private milk projects within the state. The decision aims to support and bolster the dairy farming community.

Under this initiative, milk-producing farmers who are part of cooperative milk societies and private milk projects will receive a subsidy of Rs 5 per liter for cow milk. To ensure fair compensation, these farmers are required to pay a minimum rate of Rs. 27 per liter for milk with a quality standard of 3.5 fat / 8.5 SNF (Solids-Not-Fat) through online transactions to their respective bank accounts.

The subsidy will be directly debited (DBT) to the bank accounts of the concerned milk-producing farmers after the initial payment. Furthermore, a system of deductions and increases has been established based on the fat and SNF content, with a reduction of 30 paise for each point below the specified standard and an increase of 30 paise for each point above.

To facilitate the smooth implementation of this scheme, a specialized software has been developed through the banking system, ensuring a seamless subsidy transfer to the bank accounts of the deserving farmers.

According to data from November 2023, the daily milk collection through cooperative milk unions and private milk projects stands at an impressive 149 lakh liters. Considering the proposed subsidy of Rs. 5 per liter, an estimated subsidy of Rs. 230 crore will be required for a one-month period. However, this amount is subject to change based on fluctuations in actual milk collection.

The scheme is scheduled to be rolled out from January 11, 2024, to February 10, 2024, marking a crucial step towards supporting the dairy sector and ensuring the welfare of milk-producing farmers in the state.

The Maharashtra cabinet also cleared a proposal that offers an option of availing the Old Pension Scheme (OPS) to the state government employees who joined the service after November 2005.

The Maharashtra cabinet decision comes days after the government as well as semi-government employees and officials went on a strike to press for their demand of restoring the OPS, newswire PTI reported.

The cabinet gave its nod to the proposal that offers an option of the OPS to the state employees who joined the service post-November 2005, the Chief Minister's Office (CMO) said.

Talking to PTI, Vishwas Katkar, general secretary of the Maharashtra state employees' confederation, said, "The Maharashtra cabinet's decision will benefit some 26,000 state government employees who were selected before November 2005 but received joining letters later. This decision will benefit only these 26,000 state employees."

There are as many as 9.5 lakh state employees who joined the service before November 2005 and they already enjoy the benefits of the OPS, the PTI report said.

Under the OPS, a government employee gets a monthly pension equivalent to 50 per cent his/her last drawn salary. There was no need for contribution by employees. The OPS was discontinued in the state in 2005.

Under the New Pension Scheme (NPS), a state government employee contributes 10 per cent of his/her basic salary plus dearness allowance with the state making a matching contribution. The money is then invested in one of the several pension funds approved by the Pension Fund Regulatory and Development Authority (PFRDA) and the returns are market-linked.

The Maharashtra cabinet also cleared a proposal to charge Rs 250 as toll amount for cars for using the Mumbai Trans Harbour Link (MTHL), the country's longest sea bridge that connects Sewri in Mumbai to Nhava Sheva in neighbouring Raigad district.

Prime Minister Narendra Modi will inaugurate the MTHL on January 12. The 21.8-kilometre long bridge will bring down the journey from the current two hours to around 15-20 minutes.

In another proposal okayed by the Maharashtra cabinet, the clerks-typists working in the Mantralaya will be given a monthly allowance of Rs 5,000 over and above their current remuneration, the CMO said.