The Karnataka Milk Federation (KMF) is considering increasing the price of milk by Rs 5 per litre and a proposal to this effect is awaiting the government's approval, sources said.
The last price hike of Rs 2 per litre was effected in February 2020.
Confirming that a proposal for a price hike is in the offing, KMF Managing Director B C Sateesh told DH that the hike is being demanded in view of increased fuel and electricity charges. He said that the increasing transportation cost is adding to the milk farmers' burden.
“Corrugated packaging boxes, required in large numbers, are in short supply. Thanks to Covid-19, the supply of these boxes have been affected. The scarcity of pulp has indirectly caused an increase in cost. All these factors have contributed to a demand to increase the price," he said.
He also added that 85 per cent of the increased price will benefit the farmers. "The agents and societies will also benefit from the increased hike," Sateesh said.
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