Chamarajanagar Milk Union (Chamul) reduced its procurement price by Re 1 per litre, effective Nov 11, impacting 35,000 milk producers in the district.
Chamul, which procures 2.80 lakh litres daily, previously paid Rs 31.2 per litre, but now offers Rs 30.2. It still continues to offer Rs 32.7 per litre for the best quality milk from producers.
Chamarajanagar has 465 primary cooperative milk producers’ societies. Fluctuations in global skimmed powder and butter prices are attributed as some of the reasons for this price cut, according to Chamul officials.
Chamul managing director Rajkumar said that this price revision cut is temporary to avoid loss to the milk union caused by fluctuations in global skimmed milk powder and butter prices. Though the milk union is converting the excess milk it procures from milk producers into skimmed milk powder, butter, and other products and stocking them, there is not much demand for these products in both national and international markets right now. This price cut is temporary, and milk producers must cooperate with the union until the price stabilises in the international markets for its products, he said.