Karnataka Milk Federation increases price of milk and curd by Rs 3 per litre

While the price of milk was hiked by Rs 2 in February 2020, the price of curd had gone up recently, in July, by Rs 2 owing to the 5% GST levied on packaged curd

People will have to shell out more for ‘Nandini’ milk and curd, starting today, since the Karnataka Milk Federation (KMF) has increased the price of milk and curd by Rs 3 per litre.

While the news on the price hike was making rounds for nearly a year with the chairman and officers hinting at it, the final decision was announced on Monday.

KMF, in a statement, said that processing and maintenance costs in dairy farming had increased gradually over the last two years. The officials pointed out that the cost of materials used to prepare food for cattle had gone up by at least 30 per cent. “By the end of June 2022, we were collecting close to 94.20 lakh litres of milk a day. However, this came down to 78.80 lakh litres since many small farmers gave up dairy farming owing to the rising costs,” one of the KMF officials said.

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That apart, transportation, packaging, and electricity costs have also gone up by 20 per cent to 35 per cent, the statement said. Lumpy skin disease and adverse weather conditions also added to the farmers' woes, the statement said.

However, sources in KMF said that the farmers had demanded a hike of Rs 5 per litre. “With the mounting costs, farmers were demanding a Rs 5 hike. Many of the unions are paying farmers Rs 2 to Rs 3 more from their reserve fund to ensure they do not drop out. The price rise was necessary to prevent losses to farmers and Rs 3 will go completely to farmers,” a senior KMF official told DH.

While the price of milk was hiked by Rs 2 in February 2020, the price of curd had gone up recently, in July, by Rs 2 owing to the 5 per cent GST levied on packaged curd.

While the price for a litre of milk will go up by Rs 3, it could translate to Rs 2 for a half litre. At present, half a litre of toned milk costs Rs 19 and the hike could only take it up to Rs 20.50. However, since the 50 paise is no more in circulation, people could end up paying a Rs 2 hike. “This might be a problem for a small set of people. However since a majority of the population uses digital payment modes and maintains accounts with the vendors it might not be a big issue,” said one of the KMF officials.