Milma is keen on a revision in prices of milk. Though the quantum of increase and the effective date of implementation are yet to be decided, the hike is inevitable, top officials of the milk marketing federation have said.
Milk being an essential commodity, the question on the authority to raise the prices had been subjected to judicial review.
'The High Court had ruled in favour of Milma, but it needs concurrence of the government and Milma is in the process of discussing the matter with the government, P.T. Gopala Kurup, chairman of Milma, told The Hindu.
A report would be submitted to the government soon on the need for a hike. Deliberations will be held with the concerned after the election results are declared. The intended increase is in the interest of dairy farmers, he said.
P.A. Balan Master, chairman of the Ernakulam region of Milma, said the organisation is expecting a decision on the issue by the end of May so that the prices could be increased from next month. Dairy farmers’ primary societies which supply milk to Milma had been demanding a price hike as the cost of inputs, mainly cattle feed, had gone up. The prices of milk powder procured from other States for mixing with the procured milk to meet the standards set for marketed milk, has gone up steeply, he said.
An offer of a higher price would help Milma to realise increased volumes of procurement.
Milma had effected a price increase in October, 2012, by Rs.5 per litre out of which Rs.4.60 was passed on to the farmers, according to the cooperative body.
On an average, the three regional unions of Milma collected 8,79,789 litres daily in 2012-13, denoting an increase of over 12 per cent over the previous year. The average sales per day touched 11,88,507 litres in the State during the same period, registering an increase of 1.10 per cent over the previous year.