Bengaluru : The state government will take a decision on the proposal to hike the cost of milk by Rs 3 a litre within the next three days, with the Karnataka Milk Federation (KMF) holding talks with the chief minister on Thursday. The board of directors will discuss the outcome of the talks on Friday.

KMF chairman Balachandra Jarkiholi was speaking on the sidelines of an event where Chief Minister B S Yediyurappa launched a slew of products under the Nandini brand.

Jarkiholi said the issue was a sensitive one and the decision has to be taken by the government. “The need for a hike springs from the fact that the cost of Nandini milk (Blue) has stayed at Rs 35 per litre for three years while private players in the market sell milk at Rs 38 to Rs 42. The plan is to help dairy farmers by sharing 75% of the hiked value,” he said.

While Jarkiholi refused to reveal the extent of hike sought by the federation, officials in Bangalore Urban, Rural and Ramanagara District Cooperative Milk Producers Societies Union Ltd (BAMUL) said each of the 14 unions have sought different hikes.

“We have sought a hike of Rs 3 per litre, which is in line with the amount sought by other unions. However, there is a feeling that the government may not agree to a hike beyond Rs 2. A decision will be taken after a meeting with the chief minister in the evening. This will be followed by a KMF board meeting scheduled on Friday,” an official said.

The KMF on Thursday requested the chief minister to increase the subsidy given to the farmers by Re 1 in the upcoming Budget.

Jarkiholi said the government gives subsidy of Rs 5 and it needs to be increased to Rs 6 to help the rural masses, especially small and marginal farmers, who depend on animal husbandry to make ends meet at a time the agriculture is in deep crisis.

He said KMF was looking into the possibility of marketing its products in Dubai. “During the Dubai Food Festival, businessmen there approached us stating that there is a high demand for Nandini products in the Emirates. They want to sell our products. We are exploring the option,” he said.