BENGALURU: While Karnataka’s milk unions are pressing for a hike in Nandini milk prices, financial data shows that 11 of the State’s 16 milk unions were in profit during April-July, with a combined profit of about Rs 39.95 crore.
The remaining five unions reported losses, with Chikkaballapur recording the highest loss of Rs 11.88 crore.
Chief Minister D K Shivakumar, who held a meeting with the presidents of cooperative milk producers’ unions on Saturday, said the final decision on the proposed milk price hike would be taken after discussions in the State Cabinet.
He said the government would also examine milk prices in neighbouring States, including Tamil Nadu, Telangana and Andhra Pradesh, before taking a decision.
The unions and their representatives have sought a Rs 12-per-litre increase in milk prices. Of this, Rs 2 is proposed to be allocated directly to milk producer societies.
Shivakumar acknowledged that the milk unions were facing financial pressure under the prevailing prices and that there was growing resentment among milk producers. "More than 50,000 milk producers have sought a hike," he said.
The financial performance of the unions, however, varies sharply.
Bengaluru-based BAMUL posted the highest profit of Rs 15.73 crore, followed by Hassan (Rs 11.72 crore), Mandya (Rs 10.69 crore) and Shivamogga (Rs 9.22 crore). At the other end, Chikkaballapur reported a loss of Rs 11.88 crore and Kolar Rs 5.48 crore.
The unions say rising expenditure on cattle feed, fodder, medicines, fuel, electricity, raw materials and milk processing has pushed up the cost of procurement and processing. The drought has further affected fodder availability and increased costs for dairy farmers.
The State’s 16 milk unions currently procure around 1.04 crore litres of milk a day and sell about 62.48 lakh litres of milk and curd. More than 25 lakh milk producers supply milk through over 15,000 producer societies.
The unions have also pointed out that Karnataka’s milk procurement price is lower than that in several neighbouring States. They want any increase in the selling price to strengthen both the unions and milk producers.
“If the entire increase in the selling price is passed on to milk producers, as was done earlier, the milk unions will face further financial strain. A substantial portion of the hike should be retained by the unions to meet their rising costs”, urged Hassan Milk Union president and MLA H D Revanna.
Financial performance of 16 milk unions — April to July.
Milk union Profit/Loss (Rs crore)
Bengaluru (BAMUL) +15.73
Hassan +11.72
Mandya (MANMUL) +10.69
Shivamogga +9.22
Mysuru +3.31
Tumakuru +3.22
Dakshina Kannada +2.16
Chamarajanagar +1.08
Dharwad +1.07
Belagavi +0.50
Kolar (KOMUL) -5.48
Chikkaballapur -11.88
Vijayapura-Bagalkot -1.24
Raichur-Ballari-Koppal -0.51
Haveri -0.38
Kalaburagi -0.30