Karnataka Milk Federation likely to hike prices by ₹3/ litre: Report
The Karnataka Milk Federation has proposed to raise milk prices by ₹3 per litre.
The Karnataka Milk Federation (KMF), a dairy cooperative under the brand name ‘Nandini’, has proposed to the Basavaraj Bommai-led government in the state to raise the price of milk by Rs. 3 a litre, owing to a rise in input costs in the dairy industry, The Hindu has reported. The federation came to the decision at its annual general body meeting on Friday.
The KMF had last hiked prices of milk in February 2020 by Rs. 2 per litre. Talks had also come up earlier this year in April of a ₹3 per litre price hike, however, it was disallowed by the state government.
The KMF in April had been juggling increased electricity and fuel prices, while milk farmers bore rising costs of transportation. Covid related curbs had also made for a short supply of corrugated boxes in the market, which the federation needed in bulk for packaging. Moreover, there was also a shortage in pulp.
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The state government has shrugged off appeals by the KMF to raise milk prices in the past, and has yet to approve their latest proposal, which is expected to come up in the monsoon session of the state legislature. The KMF will be passing on the entire hike of ₹3 directly to farmers. One litre of Nandini milk is currently sold at ₹37 in Karnataka, whereas neighbouring states charge around ₹50 for the same, milk unions have said.
The Hindu quoted sources close to Balachandra Jarkiholi, the KMF's chairman, as saying that the general body of the federation arrived at their decision to hike the current milk price by ₹3 after pressure came from all the 14 district milk unions.
This move comes amid a proposed rally by milk producers in Mandya, Kolar, Ramanagaram, and Bengaluru Urban and Rural districts on September 22 seeking a ₹5 per litre price hike.