Bamul to hike milk purchase price

Bamul to hike milk purchase price

Increase will not burden consumers

Bamul to hike milk purchase price

Bangalore Milk Union Limited (Bamul), which recorded a profit of Rs 22 crore, has decided not to hike the price of milk in Bangalore for the current financial year 2013-14.

However, it will increase the purchase price of milk by Rs two a litre, said Bamul president Ullur C Manjunath. Speaking to reporters here on Monday, he said: “The farming community has suffered this year due to the foot and mouth disease affecting cattle. Despite this, the union has been able to make a profit of Rs 22 crore, and the same will be passed onto the farmers, considering their plight. This will come into effect from January 1, 2014,” he said.

He said that at present farmers were paid Rs 21 per litre of milk and the same had been enhanced now to Rs 23. Of the three lakh members in the society, 1.6 lakh members supply milk to Bamul.

A 15-paise per litre incentive has also been announced by Bamul to the employees of the co-operative union, who collect milk from farmers, and two paise per litre of milk will be given to maintain the milk unions. Allaying the fears of consumers that there might be an increase in milk prices, Manjunath said there will not be any such move at present.

Bamul will also give a sum of Rs 10,000 to the farmers who have lost their cattle due to the foot and mouth disease. “This will be for the cattle, which have died without insurance cover for them. For those whose cattle are covered under insurance, Bamul will pay from its trust,” he said.

Bamul, accordingly, will pay Rs 6,000 for a cow and Rs 3,000 for a calf which had died due to the disease. “The State government has announced a sum of Rs 25,000 per cattle head.

Of this, the government gives Rs 16,400, while our share is Rs 8,600,” said Manjunath. A cheque for Rs 73 lakh will be handed over to the government for distribution among farmers, he added.