The Karnataka Milk Federation (KMF) has not dropped plans to hike milk price. It has only deferred the decision on revision of prices till November 20, according to KMF chairman Balachandra Jarkiholi.
“After instructions from Chief Minister Basavaraj Bommai, we have put on hold the decision to hike prices. He has promised to hold a meeting of officers of KMF, Finance and Cooperation departments,’‘ Mr. Jarkiholi told The Hindu.
“We have to hike prices as we need to increase our revenue and stem losses we are suffering in some areas,’‘ he said. He said that cooperatives trading in milk in several States have hiked prices.
KMF officers said that the federation is suffering challenges on many fronts.
“Our revenues are down by 10%-12% compared to pre-lockdown levels. KMF has already hiked the price of around 100 products, other than milk and curd, by 5%-15%. Prices have been upwardly revised for all value added products such as sweets, milk powder-based products and also non-milk products. That was necessary as we were unable to pay proper commission to our retail agents and farmers,” a senior officer said.
“We need functional autonomy in fixing and revision of prices of milk. Gujarat Cooperative Milk Marketing Federation has functional autonomy in this. It does not depend on the either the State or the Central government to take such decisions. The State government should allow us similar autonomy in taking day-to-day administrative matters and such financial matters, the officer said.
KMF’s reduced revenues have affected procurement, thereby reducing the cash flow in the hands of farmers.
“Our procurement has come down to 79 lakh litres per day, from 95 lakh litres six months ago. Regional distribution has also been affected. Of the around 80 lakh litres per day we collect, over 85 per cent is from South Karnataka and the coastal districts and the rest is from North Karnataka districts. This anomaly needs to be addressed too,” the officer said.
