The Karnataka Milk Federation (KMF), a dairy cooperative under the brand name Nandini, has withdrawn its decision to hike the rates of milk and yogurt in Karnataka after an intervention from chief minister Basavaraj Bommai’s office, a report by the Deccan Herald said.
The federation had announced on Monday that it would hike prices by ₹3 per litre, citing increasing costs. However, it revoked the order after Bommai said that a final decision will be taken after a meeting with senior officials post November 20.
The KMF was seeking a hike in prices as costs of processing, transportation, packaging, electricity and maintenance are all rising, along with the cost of materials used to make cattle feed.
Moreover, farmers are having a hard time getting the desirable output as many cattle developed the lumpy skin disease this year.
The KMF had decided to pass on the entire hike of ₹3 directly to farmers.
“With mounting costs, farmers were demanding a ₹5 hike. Many unions pay farmers ₹2 to ₹3 more from their reserve fund so that they don’t drop out. The price rise was necessary to prevent losses to farmers and ₹3 will be given entirely to farmers,” a senior KMF official told the publication.
Much like this time, the state government has shrugged off appeals by the KMF to raise milk prices in the past.
