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Take food inflation positively, it is a good sign for Indian prosperity, says RS Sodhi of GCMMF

Updated : December 27, 2019 19:17:27 IST

Food inflation was not a bad thing and it helped farmers increase their income by 3-4 percent, said RS Sodhi, Managing Director of Gujarat Cooperative Milk Marketing Federation (GCMMF).

Sodhi told CNBC-TV18 that: "We take food inflation negatively, we expect urban consumer to increase their income by 7-8 percent every year,  but if framers wants to increase their income by 3-4 percent, we call it food inflation."

Milk prices have gone up by nearly 15 percent from the lows of this year, yet the industry has done well.  The procurement though has declined by 4-5 percent.  For Amul,  it went down by 5-6 percent, and that was one of the reasons that you have seen the milk prices going up, he said.

"So we are working to make consumer aware that please give more price for milk, more price for fruits and vegetables because by this you will reduce the disparity between the urban India and the rural India.”

“We are working on number of products whether it is bakery or sweets or some new flavours in ice-creams or the beverages. We will continue putting up new plants whether in Punjab or Calcutta or in Pune. About Rs 800-900 crore of investments are being made.”

Speaking about consumption of milk and dairy products, he said: “As far as consumption of milk or dairy products, there is no slowdown. There is some shift is happening. I mean last 3-4 years number of players especially the small and regional players have increased tremendously.”

Talking about food inflation, he said: “One area which we have to make all urban Indian consumer aware that they should take food inflation or milk inflation positively. It is a good sign for Indian prosperity. Food inflation is equal to increase in income of rural producer."

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