Capitalising on the flush season, Mother Dairy's daily procurement of milk has increased by around 12 per cent, which has helped the dairy major to pile up stock for the lean summer season.

“Mother Dairy is collecting about 60 lakh litres of milk daily. Out of this 38 lakh litres is sold daily and the rest gets converted for the lean season,” Mother Dairy Fruit and Vegetable managing director, Mr Shiva Nagarajan, told PTI.

Collection in 2011-12 fiscal compared to the last fiscal has increased by about 12 per cent, the MD said.

“We have secured the upcoming summers requirement and will be able to meet the lean season demand without relying on import of SMP (Skimmed Milk Powder),” Mr Nagarajan said.

Due to flush in milk production, the procurement cost of milk has been lowered, he said.

“But, farmers have not lost because despite the slash price is still higher by about 10-12 per cent compared with last financial year,” Mr Nagarajan added.

With about Rs 5,200 crore in value this financial year, Mother Dairy, which rules the milk and dairy products market in Delhi and NCR, is growing at around 28 per cent, he said.

It is in four businesses – refined vegetable oil (Dhara), dairy products, milk and horticulture.

“With handsome growth in all the four businesses, we hope Mother Dairy will be able to keep the inflation at low in the next financial year,” he added.

Set up in 1974, Mother Dairy is a wholly owned subsidiary of National Dairy Development Board (NDDB) of India. It collects milk daily from farmers of Punjab, Uttar Pradesh, Maharashtra, Karnataka and Rajasthan.

It is paying increased focus in UP region by forging partnership with Pradeshik Cooperative Dairy Federation (PCDF) in the most populous State.