DKMUL Boosts Milk Producer Incentives by Rs1 per Litre

The Dakshina Kannada Cooperative Milk Producers’ Union Ltd. (DKMUL) has approved a special additional incentive of ₹1 per litre of milk for its member producer societies to support dairy farmers through the summer months, effective February 21 to May 31, 2026. This incentive aims to mitigate the impact of green and dry fodder shortages and rising input costs faced by farmers in the coastal region of Karnataka.

Under the revised structure, the extra ₹1/litre is in addition to the existing quality incentive of ₹1.50 per litre for milk meeting parameters of 4.4% fat and 8.5% SNF (solids-not-fat), bringing the total quality milk procurement rate to ₹41.7 per litre for eligible milk supplies.

DKMUL President Raviraj Hegde explained that the incentive is designed to help producers manage elevated costs of cattle feed and fodder — particularly silage and green fodder scarcity in the current off-season — and to encourage continued milk production and quality enhancement during a challenging period.

With average daily milk procurement around 4.1 lakh litres per day — a slight decline from 4.2 lakh litres in December 2025 due to seasonal pressures — the additional incentive will cost the union an estimated ₹4.1 lakh per day, totaling approximately ₹4 crore over the incentive period.

DKMUL also noted a daily demand of about 5 lakh litres, with the current shortfall being met by sourcing milk from other Karnataka milk unions in Hassan, Shivamogga and Mandya districts. Hegde urged member societies to use this period to boost both procurement volumes and milk quality in order to maximise benefits from the incentive initiative.

Source : Dairynews7x7 Feb 22nd 2026 Read full story here

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