‘There may be a rise in demand in March from States such as Delhi, Punjab and West Bengal’
A record quantity of milk powder and butter produced by the Mysore and Chamarajanagar Milk Union from the surplus milk generated during the “flush season” last year have been stored in Karnataka Milk Federation’s deep freezers in Mysore and Bangalore, in anticipation of a good price in the north Indian markets.
The milk powder and butter is estimated to be worth around Rs. 40 crore, according to sources in the union.
Mysore Milk Union Managing Director Suresh Babu told The Hindu that 1,790 tonnes of milk powder and 790 tonnes of butter had been produced by the union when the average milk procurement was around 5.2 lakh litres last monsoon.
“Milk procurement went up to a record 6.25 lakh litres (highest in the history of the milk union) during the flush season last year,” he said.
Till November last, 2,300 tonnes of milk powder had been produced at the Mysore dairy.
After some portion of the stock was liquidated, 1,790 tonnes of milk powder was remaining, he stated.
Mr. Babu said the milk union had taken a loan of Rs. 20 crore (at 10 per cent interest) from a bank here to meet expenses such as payment of procurement price to milk producers.
“However, the State government had agreed to share the interest burden,” he added.
“We will repay the loan when the milk powder and butter stocks are cleared as we are hoping for a rise in demand in March and April from States such as Delhi, Punjab and West Bengal. On getting a good price, we will liquidate the stock. This can help us pay better price to our producers,” he said.
The Managing Director also said the government had sanctioned Rs. 3.6 crore to the union.
The union is gearing up to submit a detailed project report to the Centre through NABARD, seeking grants for its Rs. 116-crore mega dairy proposed at Alanahalli here.
Mr. Babu said the Centre would be requested to share 50 per cent of the project cost while 10 per cent of the cost would be borne by the State government and the remaining by the union.
The fully-automated mega dairy would be the second such in the State after Bangalore.
“It’s a fully computerised plant with hi-tech features. It also cuts down the cost of production,” he said.