Rising fuel prices are having a cascading effect, with milk prices set to rise in the city. Nearly 20 lakh litres of milk are supplied every day through 10 major and 70 mini dairies, including government-owned Vijaya Dairy. Managements of dairies are facing financial stress as transportation costs are escalating.

Now, Vijaya is selling toned milk for Rs 48 per litre and pure buffalo milk for Rs 62 per litre while private diaries are selling normal milk for Rs 56 and pure milk for Rs 80. “We have incurred huge losses due to the pandemic.

Now with the rising fuel prices, the transportation costs have increased and we are left with no option but to increase the price of milk,” said the manager of a private dairy.

Meanwhile, Vijaya Dairy general manager K Kamesh said, “The government hiked milk prices a year back. We procure milk through the process of tenders from all over the state. But before increasing the prices, a board consisting of senior IAS officers of the animal husbandry, finance, agriculture and cooperative societies will study the market situation”.

Vijaya chairman L Buma Reddy said the sale of milk products, affected due to pandemic, is picking up now. “The annual turnover of the Vijaya Dairy is between Rs 700 and Rs 800 crore. Due to the pandemic, we lost around Rs 100 crore. Our target is to earn Rs 1,000 crore by next year,” he said.

Source : The Times of India Feb 16,2021