Tuesday, July 15, 2008

Who wants Milk at Rs.50/litre

The cement industry has started using bran as an energy source, pushing its price up by Rs2,500 per tonne in just two days to Rs5,000, The News has learnt. Besides the price increase, the burning of bran in cement factories will adversely affect the environment and prices of milk in the country.

Following the increase in gas and coal prices, the cement industry has started consuming wheat bran for its burning process for cement making. Currently, almost every cement unit of the province is using bran as an energy source in order to continue the production.

The price of bran has sharply increased in just two days and the livestock sector feared that if the government did not intervene, the price will further increase to Rs7,500 to Rs10,000 per tonne.

Bran is used as fodder and after its use in the cement industry it will not be available to the livestock sector. Thus, a shortage of fodder can occur in the market, livestock sources said, adding currently average bran utilisation of a cement unit is 300 tonnes daily.

The cement industry argues that the price of coal has reached Rs14,000 per tonne while gas prices have also been sharply increased by the government. In such a scenario, it is impossible for the industry to continue its production to compete in the international market.

In order to meet its energy requirement, the industry has been burning bran in its units during the cement-making process, they admitted. However, they were of the view that they were paying a higher price than the livestock sector, and hence, they had the right to buy it from the open market at higher prices than the farmers.

Livestock sector sources said that if the current pace of utilising bran stays the same, the cement industry will continue employing it till it completely diminishes in a matter of two months. The farmers and fodder sellers buy bran and stock it, which is then later used by the livestock farmer round the year till the new wheat crop arrives.

Once bran becomes unavailable in the market, or the price of it sharply increases taking it completely out of the common farmers, they will be compelled to switch to other fodders which will be far costlier. This will adversely affect milk production and its price in the country. The livestock sector feared that if the surging trend in the price of bran continues, the price of milk can reach as high as Rs50 per litre from Rs32 per litre.

It is important to mention here that burning of bran, husk and chafe is an offence. The Indian government has made a law that prohibits bran, husk and chafe from being used for burning purposes by any industry.

courtesy: THE NEWS

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