The reduction in milk procurement prices by Raichur, Bellary & Koppal Districts Cooperative Milk Producers’ Societies Union Ltd (RBKMUL) is expected to impact farmers’ profits. The price cut, which lowers the procurement rate by ₹1.50 per liter, was made due to fluctuations in global skimmed milk powder and butter prices. Other milk unions across Karnataka are likely to follow suit.
A senior official from the Karnataka Milk Federation (KMF) explained that the price reduction is necessary due to a ₹3 crore loss that RBKMUL could not offset. As increasing consumer milk prices was not feasible, reducing procurement costs became inevitable.
Similar measures may be adopted by other unions, with reductions varying based on their financial conditions, ranging from ₹0.50 to ₹2 per liter. The decision, although necessary, has been met with dissatisfaction from farmers who foresee significant losses.
Union Minister Pralhad Joshi criticized the Karnataka government for this decision, arguing that it undermines the efforts to support farmers.
In June, KMF had increased milk quantity in packets while also raising prices, citing increased production, which now stands at 95-98 lakh liters per day.
