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KMF recommends Rs 4 increase in milk prices

Posted on Jan 21, 08:13PM | UNI

In what could turn out to be a tricky decision for the Jagadish Shettar government in the election year, the Karnataka Milk Federation today recommended a Rs four per litre increase in price of milk to offset the losses it is suffering and provide better prices for the producer.

The working committee of the KMF today met under Federation chairman G Somasekhara Reddy and decided to recommend the government to raise the milk prices.

"KMF is selling toned milk at Rs 24 per litre while it is Rs 28 and above in most of the states in the country. KMF has suffered losses and its recent decision of reducing the rates given to milk farmers has invited criticism. We urge the government to order an upward revision of Rs four per litre as soon as possible," Mr Reddy told reporters.

KMF which has a huge stock of milk powder and butter unsold in its storage facilities have been incurring losses due to higher price offered to the producers and increasing costs.

Janata Dal(S) leader H D Revenna urged the Centre to step in and ask National Dairy Development Corporation to provide free aid to State milk federations several of whom were under loss in the country.

Speaking to reporters, he said NDDB was in a position to help the milk federations as it had a corpus fund of Rs 4,000 crore. "Each federations could be provided with an aid of Rs 300 to 400 crore which can help a great deal the farmers who produce the milk," he added.

He urged the state government to put an end to supply of huge quantity of milk by private dairies from outside the state.

Though KMF is producing surplus milk compared to the demand in the state, an estimated seven lakh litres of milk daily supplied by private dairies situated in Andhra Pradesh and Tamil Nadu is being sold in Karnataka.