No hike in price of milk, only additional cost for additional quantity: CM

Average procurement of milk by the Karnataka Milk Federation is up by about 15% when compared with the corresponding period last year

Published - June 25, 2024 10:26 pm IST - Bengaluru

The new prices were announced by the Karnataka Milk Federation on Tuesday.

The new prices were announced by the Karnataka Milk Federation on Tuesday. | Photo Credit: SUDHAKARA JAIN

Good monsoon and increased procurement price being passed on to dairy farmers have increased the average procurement of milk by the Karnataka Milk Federation (KMF) by about 15% when compared with the corresponding period last year.

While the average procurement of milk in Karnataka was around 90 lakh litres daily last year, it has increased to 99 lakh litres this year, Chief Minister Siddaramaiah pointed out in a statement on Tuesday in which he justified the additional 50 ml milk being supplied in Nandini packets at an additional cost of ₹2 saying that it was to protect the interests of the dairy farmers. The new prices were announced by the KMF on Tuesday.

‘Not turning back farmers’

“At no point, the village-level dairy societies should refuse to procure the milk brought by the farmer and increased quantity in milk packets is to protect the farmers’ interests. There has been no increase in the price of milk. But the additional cost is for the additional quantity of milk,” the Chief Minister clarified.

He said the KMF was already converting 30 lakh litres of milk into skimmed milk powder and producing about 250 tonnes daily. “The production is commensurate with the demand,” Mr. Siddaramaiah said.

The Chief Minister said that when the Congress government came to power in May 2023, an average 72 lakh litres of milk was being procured. “After the retail milk price increased by ₹3 a litre and the amount was passed on to farmers, dairy farming became profitable to farmers. Along with that, availability of green fodder due to good rainfall has resulted in the KMF’s procurement reaching almost one crore litre a day,” he said. The KMF has decided to pass on the additional milk to the consumer without adding much burden.

No distress sale

One other reason for milk procurement increasing in Karnataka since last year, despite drought prevailing in the State, has been attributed to a decrease in the distress sale of cattle. An official of the KMF recently said though the cattle sales had continued, it was more or less stabilised after the price hike. Cattle sales, especially in the Old Mysore region, had been attributed to high input cost and low returns.

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