The ruling Congress party is caught in a bind with several milk unions such as those in Bengaluru, Mandya, Chamarajanagar and Kolar raising concerns about the ballooning production cost not only due to inflation, but also due to the recent increase in power tariff.
Sources in the animal husbandry department and the Karnataka Milk Federation claim that the proposal to increase milk prices by at least by Rs 3 per litre was awaiting Chief Minister Siddaramaiah’s approval.
“Though the milk unions demanded an increase of Rs 5 per litre, the government may approve an increase of Rs 3 per litre once the budget session of the legislature concludes next week,” the sources said.
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Animal Husbandry Minister K Venkatesh has justified the proposed increase in milk prices in both Houses of the legislature.
In the Assembly, the minister said Nandini products are sold at Rs 10 to Rs 12 per litre lesser than their competitors.
“So, a reasonable increase in milk prices will not burden the consumer much. Our proposal before the government is to ensure the protection of farmers’ interests as well as safeguard milk unions,” he said.
In another reply, the minister said 15,515 milk co-operative societies in the state produce 351 lakh litres of milk, procured from 7.56 lakh general category dairy farmers, 42,594 SC farmers and 29,857 farmers in ST category.
“Of this, the Karnataka Milk Federation procures 1,850 to 1,900 lakh litres of milk from unions. The government is committed to release on an average Rs 95 crore to Rs 100 crore per month towards payment of milk subsidy to farmers,” the reply said.
Mandya Milk Union vice president Raghunandana told DH that the union had decided to reduce the milk procurement price by Rs 1.75 per kg from farmers as the union was facing a severe shortage of funds to manage its affairs.
“We are forced to take this decision due to high power tariff, substantial increase in packaging material as well as input costs such as fodder and treatment of cattle,” he said and added that the union procures nearly 10 lakh litres of milk daily, while sales do not cross more than 4 lakh litres.