Traders accused of hoarding, inflating prices amid ghee shortage in Bengaluru

Citizens have accused traders of hoarding and selling ghee at inflated prices, even as the city faces an acute shortage of dairy products.

The shortage has mainly affected hotels, some of which have responded by removing items from their menus.

Shortage of ghee and butter is due to the scarcity of milk, with some milk unions reporting a significant decline in production in the recent years.

“Last summer, we were able to procure close to 15 lakh litres of milk every day. However, this year, we are only getting close to 13 lakh litres of milk. Over the years, the Karnataka Milk Federation (KMF) has failed to provide the farmers with a good price and many farmers have now quit,” said Narasimha Murthy, president of Bangalore Milk Union Ltd (BAMUL), adding that ghee production dipped by 10 times due to milk shortage.

Nonetheless, some other unions have mentioned that the summer months pose a challenge, but they anticipate an increase in yield in the coming days.

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“There has been a drop in procurement levels. However, as the temperature rises, the yield usually goes down. Since we are receiving rains in a few districts, the situation should get better soon,” said Lakshmi Narayan from the Kolar Milk Union.

KMF officials acknowledged the insufficient supply, but stated that they were unable to do anything about it.

“As the summer has started, the demand for milk rose by 17% and curd by 37%. Our priority is to provide milk and curd to the public and so production of ghee and other products have taken a hit,” Sateesh B C, managing director, KMF, said.

Sateesh assured that there is no cause for worry as milk supplies have dropped by a mere 0.8% compared to last year and is expected to improve in the coming days.

'Supply to get better'

"The last month was difficult and we held multiple meetings with the Karnataka Milk Federation (KMF). We have been assured that the supply will get better in the next few days since the supply of milk to schools will stop owing to the summer holidays," said P C Rao, President, Bruhat Bengaluru Hoteliers Association (BBHA).