BENGALURU: A row is brewing between Karnata – ka Milk Federation (KMF), the govt and dairy farmers over the price of milk with chief minister Siddara – maiah appearing in favour of raising prices, produc – ers resisting the move and the federation wanting an even steeper price hike.
The crux of the issue is the rise in input costs for dairy farmers which they say had made business un – viable.While they want an increase in incentive which the govt pays them, they do not want it to be funded via a hike in retail prices.
Amid discussions in – volving 15 milk unions, Sid – daramaiah said he would decide on a proposed price hike after consulting sen – ior KMF officials. “If retail prices are hiked, it will be on the condition that KMF sends the additional money directly to milk farmers,” Siddaramaiah said.
KMF had increased prices by Rs 2 in June, al – though it added 50ml extra to each one-litre packet. But milk unions want prices to be hiked by at least Rs 5 per litre. If implemented, the current price of Rs 42 per litre could rise to Rs 47.
Although KMF is tech – nically an autonomous body and is free to set its own prices, it typically consults the govt for politi – cal considerations. Addi – tionally, there are reserva – tions among unions about passing the entire price in – crease to producers, with suggestions to allocate only Rs 3 of a potential Rs 5 increase to farmers.
Milk unions are also under strain due to a glut in production. Some un – ions, including those in Mandya, Kolar, and Rai – chur, have reduced pro – curement price by Rs 2 and are urging the CM to allow KMF to raise the retail price and share benefits with milk producers.
“There are many is – sues to be addressed before deciding on increasing the retail price. We have sought a meeting with the CM and will arrive at a decision soon,” said BP Bheema Naik, KMF chair – man. The proposed price hike has ignited widespread debate among producers, who argue that an increase in retail prices would be detrimental.
They are re – questing a procurement price of Rs 50 per litre, as – serting that this should be achieved without raising retail prices. In support of their de – mands, milk producers plan an ‘Vidhana Soudha Chalo’ protest in collabo – ration with farmer organi – sations like Karnataka Prantha Raitha Sangha.
They are also pushing for subsidised cattle feed. “A hike in prices of Nandini milk is not desir – able since it was increased only recently. But produc – ers should get a fair price,” said PR Suryanarayana, convener, Karnataka State Milk Producers Farmers Federation.
Currently, average pro – curement price by milk unions is Rs 32 per litre, complemented by a govt incentive of Rs 5. Congress had promised in its elec – tion manifesto to increase incentive by Rs 2. But milk producers are pushing for a Rs 5 hike in incentive and an Rs 8 increase in procurement price.
