The Bangalore Dairy has asked the State government to identify 50 acres of land in Ramanagaram to set up its own milk powder production plant at a cost of Rs 100 crore in an attempt to cut costs.
Addressing a press conference here on Monday, Bangalore Urban, Rural and Ramanagara District Cooperative Milk Producers’ Societies Union Ltd (BAMUL) president C Manjunath said they were incurring losses of Rs 43 for each kg of milk powder as a result of commitments to the Ksheera Bhagya scheme. According to BAMUL, 11 litres of milk are needed to produce one kg of milk powder.
“We can avoid this if we have our own conversion plant, which we plan to set up in Ramanagaram. Presently, we transport milk to plants in Andhra Pradesh and Maharashtra for conversion,” Manjunath said. The proposed 50-acre plant in Ramanagaram will have a capacity to produce 30 tonnes of milk powder daily. “We distribute 150 tonnes of powder every month, for which the cost of conversion is about Rs 12 lakh daily,” said BAMUL managing director T Gurulingaiah. The National Dairy Development Board will provide technical support for the proposed project, he added. Manjunath said a mini-dairy will start functioning soon in Hoskote. “This plant will reduce the burden on Bangalore Dairy, which is operating under immense pressure now. The Hoskote plant has a capacity to produce 2 lakh litres of milk daily,” he said.
BAMUL on Monday formally announced that milk suppliers to Bangalore Dairy will get `2 more for every litre of milk in view of the decrease in production and to distribute profits this year as incentives.
“Milk production had come down due to foot-and-mouth disease. With this hike, we hope farmers will not be forced to sell their cows. We expect an increase of 15,000-20,000 litres a day,” he said. He said a cheque of Rs. 7.84 lakh would be given to the Animal Husbandry Department toward compensation for farmers who lost cattle.