Bamul Hints at Milk Price Hike Amid LPG Crisis
The Bengaluru Milk Union Limited (Bamul) has hinted at a possible increase in milk and dairy product prices, citing rising operational costs triggered by the ongoing LPG crisis. Bamul chief DK Suresh indicated that if gas consumption is not reduced, the additional financial burden could make a price hike unavoidable.
Milk unions have been instructed to cut gas consumption by up to 55%, as continuing full usage could lead to around 30% higher expenditure on LPG procurement. This sharp increase in energy costs is putting pressure on processing expenses, directly impacting the economics of milk production and supply.
Bamul is exploring alternatives such as wood stoves and furnace oil to reduce dependency on LPG, though implementation requires infrastructure changes and cannot be executed immediately. Solar energy has limited applicability, as steam generation through boilers remains essential in dairy operations.
The development underscores how rising energy costs are emerging as a critical factor in dairy pricing, with potential implications for both consumers and the broader cooperative-led milk ecosystem in Karnataka.
Source: Dairynews7x7 2 April, 2026 Read full article here
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