Bengaluru: Animal husbandry minister K Venkatesh indicated an increase in milk prices is “inevitable” since cost of production has risen, and dairy farmers have been persistently demanding a hike of Rs 10 per litre in procurement prices. A final decision is expected after consultations with chief minister Siddaramaiah.
Venkatesh told the legislative council Tuesday that milk producers are facing huge financial difficulties due to a delay in payment of incentives. “Production cost of milk is increasing, and farmers are justified in demanding a higher price,” he said. “We have already held one round of discussions. Milk prices will be revised, keeping in mind interests of both farmers and consumers.”
He admitted that the state govt owes Rs 656 crore to milk producers, adding to the sector’s financial strain and revealed that while milk procurement has crossed the one crore litres per day mark, budget allocations did not account for the increase in production.
“This issue has been brought to the notice of the CM, and he has promised to look into it,” Venkatesh said.
Earlier, members of the legislative council urged the govt to expedite disbursement of pending payments to milk producers across the state.
KMF to expand operations
Karnataka Milk Federation (KMF), which sells milk and allied products under the Nandini brand, has revealed plans to expand its presence across North India with a new plant in Hathras, Uttar Pradesh. The move is part of the cooperative’s broader strategy to strengthen its market reach beyond Karnataka. In a statement, KMF, the second-largest milk production cooperative in the country, said it has already launched sales of Nandini products in Delhi. The new Hathras plant will aid sales across Agra, Meerut, Mathura, and Aligarh. KMF also revealed plans to introduce its products in Rajasthan later this month, marking another significant step in its nationwide expansion.