The Karnataka Milk Federation (KMF), which increased the price of Nandini milk and curd by ₹2 from Thurs- day, said it would pass on the hiked amount to its nearly one million member-farmers who bring milk to the village-level societies daily across the State.

The decision to increase the price was taken at a meeting here on Wednesday, which came after KMF
directors and officials met Chief Minister Basavaraj Bommai on November 21. While the KMF has been
demanding a price revision by ₹5 a litre from last year, it unilaterally announced a hike of ₹3 a litre of milk and curd on November 14, tak- ing the government by surprise. It was only after Mr. Bommai intervened that
the new price was put on hold.

Finally, the government on November 21 allowed the hike that would also safeguard the consumer interest, sources said. The hike — after nearly two years and 10 months —has come at a time when small and marginal milk producers are moving away from dairy farming owing to rise in input costs and an almost stagnant/ lower procurement price given by district milk unions or have started supplying to dairies that offer a higher price.
Currently, milk producers get between ₹27 and ₹31 a litre, depending on the milk union and fat con-
tent in the milk besides getting ₹5 a litre as an incentive from the State government. The additional ₹2 will help reduce the burden on the milk producers, who have been hit by nearly 30% hike in the input cost over the last two years.

KMF sources said the hike could bring about relief since a large number of farmers in the border districts, especially Kolar, had started supplying milk to private dairies that sell milk at a higher price. “The federation had seen a steep dip in procurement from a peak 94 lakh litres in June to about 78 lakh litres now.”
The KMF has cited the price of milk marketed by private dairies in the State that range from ₹44 to ₹50
a litre.
Source : The Hindu Nov 24 2022