KMF seeks Rs 4 hike for a litre of milk seeks Rs 4 hike for a litre of milk

10:01 AM, Tuesday, January 22nd, 2013

KMFBangalore : In a move that would stretch household budgets even further, the Karnataka Milk Federation (KMF) on Monday decided to hike prices of all varieties of Nandini milk, including the commonly used single-toned milk, and curd by a flat Rs 4 per litre with effect from February 1.

However, the KMF can implement the price hike only if it is approved by the State government.

Reacting to the KMF’s decision, Chief Minister Jagadish Shettar said the government would announce its decision on the price hike after discussing the proposal during the next Cabinet meeting.

If the government approves the KMF’s decision, a litre of milk (single-toned) will go up to Rs 28 from Rs 24, while the cost of curd will increase from Rs 30 to Rs 34 per litre.

“The hike applies to all varieties of Nandini milk. We hope the government will give its approval and allow the KMF to implement the hike from February 1,” KMF chairperson G Somashekara Reddy told reporters after the KMF board meeting here.
A tough choice

With elections to the State Assembly fast nearing, the ruling BJP will now have to make a difficult choice. While an increase in the milk price will directly hit the consumers, any decision to defer the hike proposal will make dairy farmers unhappy.

Nandini milk price was last increased in January 2012. Dairy farmers have been demanding that the KMF increase the procurement price (price at which it buys from farmers) citing steep increase in input cost.

Many of the milk unions, too, are running under loss due to increase in their operational cost. Hence, the KMF board, comprising managing directors of all 13 milk unions, took an unanimous decision to hike the price, Reddy explained.

Asked what the KMF would do if the government refuses to give its nod, Reddy said the KMF is confident that the government will approve the decision in the interest of farmers. “The government may cut down the quantum of hike, but it will definitely not reject the price hike,” he said.

On increasing the procurement price, Reddy said the KMF had decided to leave it to the discretion of local milk unions.-DH News


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