Brace for another milk price hike early next year in Karnataka

The Nandini Milk price in the state could go up early next year, which will be the second hike since July. Animal Husbandry Minister K Venkatesh on Friday did not rule out a hike.

In July, milk price was hiked by Rs 3 per litre.

Addressing a news conference after meeting with officials and representatives of Karnataka Milk Federation (KMF), the minister said that the government may consider the proposal submitted by KMF to increase the price in January. 

“Compared to Nandini milk price in other states and products from other states, the Nandini milk price is less in Karnataka. The milk price in our state is Rs 42 per litre (toned milk), and in neighboring states it is between Rs 48 and Rs 51,” he said.

Minister stated that even KMF had discussed this in the meeting and demanded a price hike citing the loss. “There is pressure on the government from both farmers and milk federations to hike the milk price. Though there is no proposal before the government right now, we will look into it in January,” stated Venkatesh.

Minister even said that, though there was a demand to increase the price by Rs 5 per litre, the government had considered to hike it by Rs 3. 

Venkatesh displayed a price list of milk at various states and also the comparison of price hikes by Amul and Nandini in the past. As explained by the minister, the price of Amul milk has been revised and increased by Rs 12 in the last 10 months and Nandini by Rs 3.

Meanwhile, in the meeting, the KMF authorities have submitted a memorandum to the minister requesting to increase the price of the milk powder which is supplied under Ksheera Bhagya scheme.

Currently the government is paying Rs 348.32+ GST per kilo of milk powder and the Federation demanded to revise it to Rs 400+GST. KMF also requested the government to consider price revision at least once in six months by 5%. The minister said that the government has decided to buy maize from the milk producers union to help the farmers by adding Rs 160 per quintal. “The procurement centre will be operative from November 13 and we will be paying Rs 2,250 per quintal to farmers. Our aim is to buy one lakh metric tonnes of maize from farmers in a year,” explained the minister.