The sale of milk and milk-based products has been impacted negatively in recent rimes. This has led the Dakshina Kannada Cooperative Milk Producers Union to reduce the procurement price of milk by Re 1.

The farmers in thus union will be getting Rs 28.67 a liter for the milk from June 21. As per the president DKMU, other milk unions under KMF have reduced prices between Rs 2.20 to Rs 4.70 per liter.

DKMU is collecting around 5 lakh liters per day of milk from UDUPI districts. The demand of milk and milk products in market has been reduced by 25 per cent during Covid times. This has led to a reduction in turnover of the union by Rs 50 crores in last three months. In financial year 2020-21 the Union is anticipating a loss of Rs 20 Crores also.

KMF is likely to have 15000 MT of SMP by September. DKA itself is converting around 1.22 lakh litres per day into milk powder by incurring a cost of Rs 11.37 per kg of SMP.

The prices of SMP has been dropped down from Rs 340 to a kg to Rs 160 per kg. The total production of milk in Karnataka is around 86.73 lakh litres per day but the demand is close to 40 lakh litres only. The remaining milk is getting converted into SMP and butter.