Milk could become dearer by Rs. 3 to Rs. 4 a litre if the Government agrees to a fresh proposal by the Karnataka Milk Federation (KMF). The KMF had revised the milk price in April 2010.

The KMF, which submitted a proposal to the Cooperation Department to increase prices in December, has resubmitted the proposal on Tuesday seeking a revision in milk prices, it is learnt. The proposal comes in the light of decline in procurement of milk by the federation.

Sources in KMF pointed out that milk prices had been revised in Gujarat, Maharashtra and Andhra Pradesh last month. “Despite the hike, milk will continue to be cheaper in Karnataka,” sources claimed and added that the daily procurement had come down from about 39 lakh litres to about 33 lakh litres.

The input cost to the farmers, sources said, had gone up substantially, and that the benefit of revised price would be passed on to the farmers. “While the daily procurement is about 33 lakh litres, sales have been around 28 lakh litres. Sales even touched 32 lakh litres a day recently, leaving KMF with very little flexibility.”

Dip in procurement

It is learnt that the procurement has fallen since the farmers have found the KMF price to be not lucrative enough. Besides, milk production also declines during summer. “Eventually, the decision to revise prices would be taken by the Government,” sources pointed out.

  • Daily procurement has come down to about 33 lakh litres
  • Benefit of revised price to be passed on to farmers