CM Siddaramaiah.
Credit: Karnataka CMO
Bengaluru: Not yielding to pressure from milk unions to hike prices, Chief Minister Siddaramaiah on Monday emphasised that unions exist for farmers' benefit, not to make profits.
Speaking at a meeting with the chairpersons and Managing Directors of the Karnataka Cooperative Milk Producers' Federation Limited (KMF) and district milk unions at his residence on Monday, he maintained that a decision on the price hike will be taken after a discussion in the Cabinet.
Milk prices in Karnataka are comparatively low, he said, observing that if milk prices are increased, the full benefits of such a decision must be transferred to the dairy farmers. He did not agree to the unions' request for some of the amount, if increased, to go towards tackling increasing maintenance expenses in unions.
Emphasising on transparency, he was of the opinion that milk unions should reduce expenses and not hire more contractual staff unless there is a need. "Administrative expenses should not increase by more than 2 per cent under any circumstances," he warned the heads of milk unions, asking them to reduce their administrative expenses by 2.5 per cent within the next three months.
By the end of February, at least three milk unions are operating under loss. Ballari's milk union is facing a loss of Rs 1.43 crore.