There are about 900 milk `mandalis' associated with the Dairy, and the fat suppliers are currently paid Rs 180 per kilogram fat. The participants would also stress the need for decreasing the prices of the cattle feed supplied by the Dairy to milk producers.

According to sources, representatives of the `mandalis' say that the dairy has increased prices of its various produces without increasing the price of fat per kilogram or reducing the price of cattle feed.

One of the directors of the Board, requesting anonymity, said that although the dairy has incurred a loss due to rains, their rates of cattle feed were a little lower than those of other dairies in Gujarat. The Baroda Dairy has only recently increased the price per tonne of cattle feed to Rs 4,300 from Rs 3,800. In other dairies, the rates are around Rs 4,600.

Dairy Managing Director Ravindra Mathur told Express Newsline that in August the dairy had incurred a loss of Rs 1 crore on cattle feed. He added that only 40 per cent of the `mandalis' avail the benefit, and for that all the milk producers had to suffer in rates. ``We had thought that the situation would become normal after the monsoon, but it hasn't due to poor rainfall,'' he added.

Mathur said that as the monsoon has not been good, the Dairy has decided not to lower the price per kilogram of fat.