Bangalore : Animal Husbandry Minister T B Jayachandra on Friday said a hike in milk prices has become inevitable as the Karnataka Milk Federation (KMF) is facing losses. However, the quantum of hike is yet to be decided.

Replying to a question by C T Ravi of the BJP, the minister said fodder prices have gone up from Rs 6,000 to Rs 16,000 per quintal in recent months. While the turnover of KMF is about Rs 700 crore, the profit is only Rs 500 crore.

The government’s decision to supply free milk to schoolchildren from August 1 would cost Rs 300 crore, he said.

Milk prices were last hiked in January this year by Rs 3 per litre. At present, a litre of toned milk costs Rs 27.

Sources said the KMF has not yet put up a proposal for this. The KMF Board, which has to first approve a proposal to this effect, may seek a hike of Rs 2 per litre, sources said.
Jayachandra said while a litre of milk sold by the KMF costs Rs 27 (toned), it is priced at Rs 33 in Kerala, Rs 23 in Andhra Pradesh, Rs 27 in Tamil Nadu, Rs 29 in Maharashtra, Rs 31 in Goa, Rs 30 in Delhi and Rs 32 in Gujarat.

To Ravi’s question on how much milk is procured and sold, the minister said, of the 55 lakh litres of milk is procured, 35 lakh litres is sold. Of the remaining 20 lakh litres, 10 lakh is used for milk powder manufacturing while the rest is sold outside the State.

The minister said four lakh litres of milk will be supplied to schoolchildren. About 35 lakh anganwadi children and 62 lakh schoolchildren, from class 1 to 10, would each get 150 ml milk three days a week.

He also said milk produced by other states and sold here has been found to be of substandard quality.

The minister also said the KMF is exporting milk products to Pakistan, Malaysia, Indonesia and Bangladesh, among other countries. There is a demand from Sri Lanka too, he added.