BENGALURU: Chief Minister Siddaramaiah on Sunday gave strict instructions to the Karnataka Milk Federation (KMF) not to reduce the price of milk procured from farmers by Re 1 from Rs 32.25 to Rs 31.25. As it gave an indication of triggering controversy and opposition making it an issue, Siddaramaiah intervened and asked the KMF to stall its decision.
Soon after the decision of Bamul (Bengaluru Milk Union Ltd) came to his notice, Siddaramaiah swung into action, while Bamul cited the increase in prices of milk products as the reason for its decision. He spoke to the KMF managing director and told him that the price cannot be reduced suddenly and it should be discussed with the government. “Farmers will suffer if the price is reduced and one should keep that in mind,” he said.
Bamul’s decision was widely criticised by farmers, Raitha Sangha members and opposition parties. The Mandya Milk Union Limited (Manmul) too reduced the procurement price three days ago from Rs 32.25 per litre to Rs 31.25. But both the unions had not reduced the selling price of milk to consumers.
The milk unions said they reduced the procurement price as the production of milk in May went up because of better rain and availability of wet fodder to the cattle. “Our market for the milk remained the same and we were to incur losses if we continued with the old price. When the production of milk goes down, the procurement price will automatically be increased,” said a director with one of the milk unions.
The unions have Rs 300 crore arrears due from the government against milk supplied to schoolchildren under the Ksheera Bhagya scheme, he said.
The Tumakuru Milk Union Limited (Tumul) did not reduce the procurement price, though its daily production went up to 7.1 lakh litres from 6.9 litres in May. This is because it has created a market for its milk and other products across the country, especially Mumbai, a source said.
“Reducing the milk procurement price will destroy the unions as private dairies are already competing with Nandini milk. We need to create a market fighting with Amul. The new government should take this as a wake-up call and instruct milk unions to drop the decision,” Raitha Sangha leader Kuruburu Shantakumar had urged the government.