The Hindu : Front Page : Milk price increase put on hold, for now

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Sunday, Aug 17, 2008
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Milk price increase put on hold, for now

Staff Reporter

If KMF has its way, consumers will have to pay Rs. 2 more for a litre

Bangalore: Starting Monday, you may have to pay Rs. 2 more for a litre of all varieties of Nandini milk if the Karnataka Milk Federation (KMF) has its way although the State Government has asked that the increase be put on hold.

The KMF and all the milk unions on Saturday announced their decision to increase the milk price from August 18 citing rise in prices of fuel, transportation, packaging material and cattle feed.

However, the Animal Husbandry Department, which intervened, asked the KMF Managing Director to put the increase on hold until further orders from the Government.

Sources in the State Government told The Hindu that the KMF had sought the Government’s permission for the increase, but even before the latter could ratify the proceedings of the KMF meeting, it chose to announce the increase from August 18.

Decision on Sunday

Despite this, the KMF and the milk unions have not made any changes in their decision to increase the price but chose to take a final decision on the matter on Sunday.

The increase, if it is effected, will be the second this year. The last was in January and then too the price was upped by Rs. 2 a litre. If the hike comes into effect, consumers will have to pay Rs. 16 a litre for double-toned milk as against Rs 14.

Similarly toned milk will be Rs. 18 from Rs. 16, homogenised cow’s milk Rs. 20 from Rs. 18 and full-cream milk Rs. 24 instead of Rs. 22 a litre.

Bangalore Urban and Rural District Cooperative Milk Producers’ Society Union (Bamul) Managing Director B.P. Ranganath said that implementation of the Fifth Pay Commission wage scales for employees added to costs, the rise in the cost of milk processing apart from increase in prices of fuel and other inputs.

Bamul is registering a loss of 65 to 70 paise on a litre of toned milk and Rs. 1.70 to Rs. 1.80 on a litre of double-toned milk.

It is paying 75 paise a litre less to milk producers to offset the loss, he said.

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