HUBBALLI: While the state government increased the milk price by Rs 4 a litre to pass the benefit directly to milk producers, the Haveri Cooperative Milk Union has cut the price paid to producers by Rs 3.50 per litre. Milk producers in Haveri district are getting just 50 paise more for a litre.
At a meeting on March 21, the union’s administrative board decided to lower the price paid to milk producers by Rs 3.50 per litre, effective from March 28. The decision came despite the state government’s move to increase the share of milk producers by Rs 4 per litre, effective from April 1.
Union president Manjanagouda Patil defended the decision, explaining that the union has been facing a financial loss of Rs 20 crore. This was an unavoidable measure to keep the union afloat, he added.
Acknowledging that farmers are unhappy with the union’s move, especially after the government’s hike, Patil said the union directors would meet with the district minister by the end of the week or on Monday to discuss farmers’ concerns.
Patil explained that of the 1.35 lakh litres of milk procured daily in the district, only 20,000 litres are sold in the market, and the union benefits from the Rs 4 per litre increase for that portion.
The remaining milk is used to produce various milk products, including Khreera Bhagya milk powders. “If the union were to procure milk at the increased rate, it would suffer a loss of Rs 6.4 lakh per day, amounting to Rs 16.5 crore annually. Given that the union is already burdened with debt, this approach is simply not feasible,” he added.