Yamini C S | Edited by Chandrashekar Srinivasan
The Karnataka Milk Federation (KMF), a dairy cooperative under the brand name Nandini, has withdrawn its decision to hike the rates of milk and yogurt in Karnataka after an intervention from chief minister Basavaraj Bommai’s office, a report by the Deccan Herald said.
The federation had announced on Monday that it would hike prices by ₹3 per litre, citing increasing costs. However, it revoked the order after Bommai said that a final decision will be taken after a meeting with senior officials post November 20.
READ | The Karnataka Milk Federation’s attempt at hiking prices by ₹3/ litre in September
The KMF was seeking a hike in prices as costs of processing, transportation, packaging, electricity and maintenance are all rising, along with the cost of materials used to make cattle feed.
Moreover, farmers are having a hard time getting the desirable output as many cattle developed the lumpy skin disease this year.
READ | KMF asks Karnataka govt to raise milk prices by ₹3 per litre in April
The publication quoted an unidentified KMF official as saying that milk collection per day has come down to 78.80 lakh litres from 94.20 lakh litres collected per day in June.
The KMF had decided to pass on the entire hike of ₹3 directly to farmers.
“With mounting costs, farmers were demanding a ₹5 hike. Many unions pay farmers ₹2 to ₹3 more from their reserve fund so that they don’t drop out. The price rise was necessary to prevent losses to farmers and ₹3 will be given entirely to farmers,” a senior KMF official told the publication.
Much like this time, the state government has shrugged off appeals by the KMF to raise milk prices in the past.
