The Bangalore Milk Union Ltd (Bamul), the company behind the Nandini brand of milk in three districts, has made the decision to decrease the procurement price from dairy farmers by Rs 2 per litre. This change will have a significant impact on farmers who are already facing challenges due to a poor monsoon and a shortage of fodder. While consumers will not be directly affected by this price reduction, it is important to recognize the difficulties faced by the farmers.

Until October 31, Bamul was purchasing milk from farmers at a rate of Rs 34.15 per litre. However, starting from November 1, this rate has been reduced to Rs 32.15 per litre. In addition to the incentive of Rs 5 per litre, farmers who were previously receiving Rs 39.15 will now only receive Rs 37.15 per litre. This decision will affect approximately 1.10 lakh farmers in Bengaluru Urban, Rural, and Ramanagara districts.

Rajanna, the president of Bamul, explained that they currently procure 15 lakh litres of milk daily, with 12 lakh litres being sold as pasteurized milk and the remaining used for other products, including milk powder supplied to schools under the Ksheera Bhagya scheme.

The milk union is currently facing a loss of Rs 1.85 per litre, resulting in accumulated losses of Rs 65 crore. If this trend continues, Bamul will face dire consequences. Rajanna stated that the government has not revised the transportation cost of milk powder for the Ksheera Bhagya scheme.

The government has already declared 11 taluks, falling under Bamul’s jurisdiction, as drought-affected. With both the southwest and northeast monsoons failing, farmers are struggling with a shortage of cattle fodder and are forced to pay higher prices.

Source : The Bengaluru live Nov 3rd 2023