MYMUL may soon pay less to buy milk from producers

The Mysore Milk Producers Union Limited (MYMUL) may soon reduce the price of milk due to the steep increase in milk production and the sudden fall in the price of skimmed milk powder and other milk products. MYMUL is currently paying Rs. 21 per litre of milk to producers.

The issue of price reduction will be placed at the next board meeting of MYMUL and the board will decide the amount that has to be reduced.

Some unions, including the Hassan Milk Producers Union, have reportedly reduced the price of milk to Rs. 19 per litre since the past few weeks.

C. Chenna Krishna, Managing Director of MYMUL, told

The Hindu that over 8.5 lakh litres of milk was being produced and supplied to the Mysuru dairy while daily consumption of milk in Mysuru and Chamarajanagar districts was around 3 lakh litres.

The dairy was forced to use the remaining milk to make skimmed milk powder and other milk products.

He further said that there was no demand for skimmed milk powder even globally.

Mr. Krishna further said that the dairy had already availed over Rs. 30 crore as overdraft from a bank on daily interest rate to pay milk producers and it may have to do the same if the situation continued.

He said that dual pricing was not a new concept and milf producers in Mysuru were accustomed to price variation. Milk producers had agreed for reducing prices for milk in the past under similar circumstances. Producers would be given Rs. 22 and 14 paise per litre milk on an average and the union had already reduced it to Rs. 21 since some months now. It may have to reduce it by another Rs.2 or Rs.3 per litre to ensure that MYMUL would not sustain financial loss, the MD added.