BAMUL announces Rs 60-crore profit; rolls out Ugadi bonanza for farmers and staff

Bengaluru: In a significant financial turnaround, the Bengaluru Cooperative Milk Union Ltd (BAMUL) has recorded a projected profit of Rs 60 crore for the current fiscal year, a contrast to the Rs 14.5 crore loss it incurred previously.

Announcing the results at a press conference at the Bengaluru Dairy Office in Adugodi on Thursday, BAMUL President D K Suresh attributed the success to administrative reforms and a substantial increase in milk procurement and turnover.

Turnover on the rise

The Union’s turnover, which stood at Rs 2,900 crore last year, is expected to touch Rs 3,400 crore by March 31. “We have managed to increase our turnover by nearly Rs 500 crore this year. Our daily milk procurement average has also risen by 1.5 lakh litres, reaching a total average of 16.5 lakh litres,” Suresh said.

Despite the high administrative costs with monthly staff expenses reaching nearly Rs 16 crore for 880 permanent employees and 1,800 contract workers, the President noted that the new board has focused on market and administrative improvements to stabilise the institution.

Festive gift for farmers

In a first-of-its-kind move since BAMUL’s inception in 1965, the Union has decided to distribute a "Ugadi gift" directly to the bank accounts of milk producers.

A total of Rs 59.39 crore has been earmarked as an incentive for 1,27,644 farmers. The incentive will be calculated at Rs 1 per kg of milk supplied between April 1, 2025 and March 31, 2026. “Whether a farmer has supplied 200 litres or several thousand, every single drop contributed to the Union this year will be incentivised,” Suresh clarified, adding that the payments would be cleared by March 31.

Nandini products being showcased at the dairy.

Tech integration

To ensure transparency and quality, BAMUL is adopting technology. Suresh announced the implementation of AI-driven systems to track milk packaging and online booking for packets.

Also, the integration of NDDB software at the society level now allows farmers to receive an automated SMS within one minute of pouring milk, detailing the weight, quality (fat content), and the exact amount credited to their account.

“Our goal is to push the turnover to Rs 5,000 crore. Only by scaling our business can we bring down the percentage of administrative costs, which currently stands at 6.5 per cent, well above the government-mandated 2 per cent,” the President concluded.