BENGALURU: From Sunday morning, citizens will have to cough up more for their cup of tea or coffee. This is because the cost of milk and other milk products will go up, with a base price at Rs 8 per litre.
According to the Karnataka Cooperative Milk Producers’ Federation Limited, the cost of milk has been increased from Rs 8-12 per litre, depending on the fat content. The decision was taken after a discussion in the cabinet and a detailed meeting Chief Minister DK Shivakumar had with milk farmers, unions and Karnataka Milk Federation (KMF) officials.
The price of a litre of toned milk will go up from Rs 46 to Rs 54, homogenised milk from Rs 47 to Rs 56 and special toned milk and Shubham from Rs 52 to Rs 64.
A senior KMF official said, “The Rs 8 hike is for low fat content of 3-6.5 in a litre of milk. As the fat content rises, the quality of milk increases and the rate also hikes. So the price hike is not for a litre of milk, but for the fat content in it. Further, the procurement rate also varies based on the geographic location. It is higher, for instance, in Belagavi when compared to Ramanagara. This is because of the fat content in milk and availability of fodder. However, uniformity has to be maintained while supplying to consumers.”
The KMF officials said that with the rise in milk price, the cost of ghee, butter and buttermilk will also go up based on the fat content.
Citizens said the hike is in the interest of farmers, but not consumers. “The government has been increasing the cost of all essentials. The household budget will automatically get affected.
This festival season, the cost of all items has increased. Drought is a matter of concern for everyone,” said Rohini B.
Another homemaker Kamalakshi L said, “Milk and curd are essential commodities. the government must be able to manage the costs and not pass on the burden to consumers. I cannot mix water in milk when giving it to my family members, compromising their health.”
Admitting that this is the highest price escalation so far in Karnataka, the official said, “The base price has been hiked to help farmers. This is a year of severe drought, and farmers are suffering losses. The government has been unable to bear the costs, and it is also the responsibility of citizens, who are consumers. The aim is to stop rural migration, increase employment opportunities among youth and bring them back to farming.”
According to KMF data, 1.05-1.08crore litres of milk is procured daily. There are 26.89lakh dairy farmers in Karnataka, and around 8.9lakh farmers supply milk to cooperative societies. KMF, on average, pays Rs 28.60crore to milk producers on a daily basis. The KMF will pay Rs 7 per litre to the farmer and Rs 1 to the union of the additional Rs 8 hike.
Karnataka’s milk price lower than other states even after hike: CM
Bengaluru: Defending the state government’s decision to increase milk prices by Rs 8 per litre from November 1, Chief Minister DK Shivakumar on Saturday said the revision was unavoidable to protect dairy farmers’ livelihoods, with Rs 7 of the additional amount going directly to them and the remaining Re 1 to milk unions towards operational expenses. The increase will raise the procurement price paid to farmers from Rs 35 to Rs 42 per litre. With the existing government incentive of Rs 5, farmers will receive Rs 47 per litre.
A farmer supplying 10 litres daily will earn an additional Rs 2,100 a month, while the revision is expected to generate an additional annual income of Rs 1,850 crore to Rs 2,100 crore for dairy farmers across the state, he said. “There are 28.84 lakh dairy farmers in Karnataka, and 67 per cent of KMF members are small and marginal farmers. We have taken this decision after careful consideration to ensure they receive fair returns for their hard work,” he said. Citing rising cattle feed and fodder prices, fuel and packaging costs and a decline in milk procurement due to drought, he said the government had approved only an Rs 8 hike against the Rs 12 per litre increase sought by milk unions.
He also maintained that Nandini milk prices remained lower than those of several leading dairy brands in other states even after the revision. Toned milk will cost Rs 54 per litre and Shubham milk Rs 60. Clarifying that the government had no role in deciding curd prices, he said individual milk unions were free to decide whether to increase them.