Milk to cost Rs.2 more in Karnataka from Tuesday

Nandini milk prices have gone up by Rs 2 per litre across the State. The Karnataka Milk Federation has hiked the selling price of commonly used toned Nandini milk from Rs 19 per litre to Rs 21 from Tuesday.

The hike also applies to all varieties of Nandini milk like double toned milk and Shubham milk or standard milk and curd (in kg). However, the milk and curd sachets will continue to bear the old MRP (of Rs 19) for some more days, till the already printed sachets get exhausted, a KMF release stated.

Prices of Nandini milk vary depending on the fat content. Higher the fat content, higher the price. Toned milk has 3 per cent fat, standard milk has 4.5 per cent and double-toned milk has 1.5 per cent fat content. The KMF had last increased the price of toned milk by Rs 3 in April 2010. The KMF has justified the hike saying the decision was taken to provide better price to the farmers or producers. The entire revised cost will be passed on to the dairy farmers, who will get Rs 21.50 per litre against the present Rs 18.50 per litre (this includes Rs 2 incentive the State government gives on every litre of milk). The KMF has increased the price after securing the State government’s consent.

The KMF in its Board meeting held last month had taken the decision to hike the prices by Rs 3 per litre. But the Government gave permission to hike the prices by Rs 2 per litre.
KMF Managing Director A S Premnath said milk production cost at farmers’ level had shot up due to increased cost of fodder. Many farmers had started selling milk to neighbouring states like Kerala and Andra Pradesh where they get better prices. In order to protect the interests of farmers and prevent them from selling milk to other States, the KFM has taken this decision.

He said the KMF is not making profit through the sale of milk. The federation is spending Rs 3 per litre on processing, packaging and transportation. Plus the procurement cost of Rs 18.50 per litre, the production cost per litre is Rs 21.50 now.

“We are compensating the loss in milk through the sale of other diary products,” he added.