BENGALURU: In a move that could hit nearly 24 lakh milk producers across the state, the procurement price has been cut by Rs 2 per litre with effect from June 1. The Karnataka Cooperative Milk Producers Federation Limited (KMF) procures around 75 lakh litres of milk every day. With over 65 milk and milk products, KMF has over 70% of the market share in the state. However, there will be no change in milk prices for consumers.
The decision to cut the procurement price has been taken after increase in milk production. The Bangalore Urban, Rural & Ramanagara District Co-Operative Milk Producers Societies Union Ltd (BAMUL) alone procures 17.5 lakh litres of milk daily. Of this, 10 lakh litres is supplied to consumers and the remaining sent to procurement units outside the state for converting it into milk powder.
“For every litre of milk that we send for processing, we incur a loss of `4. Given the quantity of milk that we send for converting to powder, it works out to a huge amount. Procurement price had to be reduced slightly to reduce those loses and no one is complaining about it, “ H Appaiah, outgoing president of BAMUL, Board of Directors, Doddaballapura taluk, said on Tuesday. “We have asked the state government to increase the support price from Rs 5 to Rs 7 per litre,” he added.Currently, BAMUL procures milk at `23 per litre and along with that farmers get a support price of Rs 5 per litre from the state government.
Farmer leader and Karnataka Rajya Raita Sangha president Kodihalli Chandrashekar, however, sees it as a big blow to lakhs of milk producers across the state. “It is wrong to punish them for increasing the production. On one hand, we talk about increasing production in various sectors for development of the country and, on the other hand, you punish them for increasing milk production by cutting the price,’’ he said.
Chandrashekar suggested that milk procurement price should be fixed as recommended by Dr Swaminathan Committee report looking into all aspects, and also if the government is incurring losses due to processing, it should give one litre of milk free to people every day, but not resort to any measure that will severely impact production capacity.
On Tuesday, Chandrashekar and other leaders met Chief Secretary Ratna Prabha and brought the issue to her notice. “The CS informed us that they will discuss it with the officers concerned,” he added.