A decision to this effect was taken at the KMF Board meeting chaired by G Somashekara Reddy. “A proposal to hike milk price will be sent to the government for approval.
Additional revenue from the hike will be used for upgrading infrastructure of the
federation,” Reddy told mediapersons.
The government recently announced in the Assembly that there would be a hike in the milk prices. But it had not disclosed the quantum of the hike.
The KMF, however, has decided not to increase the price of curds and other varieties of milk.
Once KMF decision is implemented, a litre of milk (single-toned) will cost Rs 29. Milk prices were last hiked in January this year by Rs 3 per litre. At present, a litre of toned milk costs Rs 27.
The government has no option but to allow KMF to increase milk price as the federation is incurring huge losses due to a recent spurt in milk production in the State.
Milk production shot up following increase in incentives to dairy farmers to Rs 4 per litre from Rs 2.
The production has reached 55 lakh litres per day from 45 lakh litres.
The federation supplies about 33 lakh litres of milk every day. And the rest is converted to milk powder.
As the market for milk powder is limited and its price has been coming down, KMF incurred losses.
Moreover, the federation does not have the necessary infrastructure to convert such a large quantity of milk into powder, sources said. Besides, KMF is learnt to have decided to provide milk powder to schoolchildren instead of milk.
The government is set to launch the milk scheme in government schools – from class I to class X – from August 1.
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