Speculation rife about milk price, as KMF seeks hike

Speculation is rife over a possible rise in the price of Nandini milk marketed by Karnataka Milk Federation (KMF).

While the federation has been under pressure from farmers to seek a price rise for sometime now, discussion to increase the price by ₹5 per litre is under way. On the other hand, there is also discussion about the possibility of withdrawing the additional 50 ml milk per sachet that is now being given, and bringing down the price by ₹2 per sachet.

While the KMF board has discussed the issue already, KMF chairman Bhima Naik on Thursday said that a meeting has been sought with Chief Minister Siddaramaiah after Makara Sankranti (January 14) to discuss the issue. The price rise will be determined by the Chief Minister, and that any decision would be announced later, he said.

Mr. Naik justified the move by stating that farmers had placed demand for price hike at an event in Magadi in Ramanagara district about two months back. He also indicated that the KMF office-bearers would be meeting again before the meeting the Chief Minister.

A source in Bengaluru Milk Union Ltd. said that there has been a demand for price rise since the input cost for farmers had risen considerably. “Ultimately, it is the government that would decide on the price irrespective of what KMF board decides.”

The government has been under pressure to revise the price to make the dairy farming sustainable. Owing to high quantum of milk procurement this season and decision not to turn away milk brought by farmers, the KMF increased the cost by ₹2 for 500 ml and 1,000 ml sachets by adding 50 ml each, in July this year.

Following the increase, the cost of toned milk in Karnataka is ₹44 a litre. The previous upward revisions came in November 2022, and July 2023, when ₹3 each had been hiked per litre. Despite the recent hike, the price of milk is considered to be cheaper in comparison to the prevailing milk prices in neighbouring States, and also in North Indian States.

Meanwhile, the issue of withdrawing additional 50 ml being supplied along with 500 ml and 1,000 ml sachets for a cost of ₹2 extra is also under consideration. Mr. Naik on Thursday said that the KMF is considering withdrawing the additional 50 ml from the sachets, and accordingly the cost of the milk will also be reduced after Sankranti.

Another KMF source said that there was no need to create a controversy over the additional 50 ml since it has always been considered a stop-gap arrangement in the light of increased procurement of milk during the current season. Currently, the KMF procurement of milk has been an average of 90 lakh litres daily from farmers across the State. The decision to add 50 ml was made when the daily procurement crossed one crore litre mark or hovered around it.