Speculation is rife as KMF tries to increase the price of milk

The Karnali Dairy Federation has been under pressure from the farmers demanding price hike for some time, but discussions are underway to raise the price by Rs 5 per litre. | Photo Credit: File photo

It is expected that there will be a possible increase in the price of Nandini milk brought to the market by the Karnataka Milk Federation (KMF).

For some time now, the federation has been under pressure from the farmers demanding price increase, but discussions are underway to increase the price by 5 rupees per liter. On the other hand, the issue of withdrawing the additional 50 ml of milk per sachet which is being given now and reducing the price by Rs 2 per sachet is also being discussed.

While the KMF board has already discussed the issue, KMF president Bhima Naik said that a meeting was called with Chief Minister Siddaramaiah after Makar Sankranti (January 14) on Thursday to discuss the issue. He said that the price increase will be determined by the Chief Minister and the decision will be announced later.

Mr. Naik said that in an event held at Magadi in Ramnagar district about two months ago, the farmers demanded a price hike. He also hinted that KMF officials will hold another meeting before the Chief Minister’s meeting.

Input costs

A source in the Bengaluru Milk Union Limited has demanded a price hike as the input cost for farmers has gone up too much. “At the end of the day, whatever the KMF board decides, it’s the government that sets the price.”

The government is pushing to revise the prices to sustain the dairy industry. Due to the high volume of milk purchase this season and the decision not to return the milk brought by the farmers, KMF increased the price by adding 50 ml to the 500 ml and 1000 ml packets in July this year.

After this increase, the price of toned milk in Karnataka is Rs 44 per litre. The previous upward revisions came in November 2022 and July 2023, when each was increased by ₹3 per litre. Despite the increase in recent times, it is believed that the price of milk is cheaper compared to the increase in neighboring states and North Indian states as well.

An additional 50 ml

Meanwhile, the matter of withdrawing the additional 50 ml being supplied with packets of 500 ml and 1000 ml at an additional price of Rs 2 is also under consideration. Mr. Naik said on Thursday that KMF is considering withdrawing an additional 50 ml from the pouch and accordingly the price of milk will also be reduced after Sankranti.

Another KMF source said that there is no need to dispute the issue of additional 50 ml as there is always a stoppage arrangement in case of increased milk purchase in the current season. Currently, KMF has been purchasing an average of 9 million liters of milk from farmers across the state. It has been decided to add 50 ml when the daily purchase exceeds one crore liters or around it.

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