Directors across 16 district milk unions threaten “Vidhana Soudha Chalo” protest as drought, fodder inflation, and regional price gaps erode cooperative procurement.
Cooperative dairy leaders in Karnataka have dramatically escalated their confrontation with the state government, demanding an immediate ₹8 per litre increase in the retail selling price of milk and an upward revision of the producer incentive from ₹5 to ₹8 per litre. As reported by Udayavani, elected directors representing all 16 district milk producers’ unions—including prominent leaders such as former Bengaluru Milk Union (BAMUL) chairman P. Nagaraju—convened a joint press conference in Bengaluru to issue a formal three-day ultimatum to the state administration. The unions warned that if an emergency Cabinet meeting is not convened to implement the price revisions within the deadline, thousands of dairy farmers will launch a “Vidhana Soudha Chalo” march on the state legislature.
The collective agitation stems from an acute operational squeeze that is depressing daily collection volumes across the Karnataka Milk Federation (KMF) network. Union representatives highlighted that while consumer demand for liquid milk and value-added dairy continues to climb, daily procurement across Karnataka has dropped from peak levels of roughly 1.11 crore (11.1 million) litres per day down to between 1.05 and 1.06 crore litres. Severe drought conditions characterized by an estimated 70% rainfall deficit have depleted water tables and triggered regional shortages of both dry and green fodder, driving smallholder herds into negative operating margins.
Compounding drought-induced feed deficits is widespread input inflation across commercial dairy feeds and processing materials. Cooperative directors pointed out that essential cattle feed raw materials—notably maize, bran, and molasses—have surged in price by roughly 25%. Simultaneously, the costs of veterinary pharmaceuticals, industrial milk processing supplies, and aseptic packaging films have jumped by 30%, while geopolitical tensions in the Middle East have driven up domestic fuel, LPG, and refrigerated transport tariffs. Furthermore, cooperative balance sheets have absorbed additional overhead following the implementation of 7th Pay Commission salary revisions for dairy union employees.
The pricing disparity with neighboring states has become an unsustainable vulnerability for Karnataka’s cooperative procurement apparatus. While private dairies have raised consumer rates, farmgate milk prices in adjacent southern states—most notably Tamil Nadu—are roughly ₹10 per litre higher than Karnataka’s benchmark. This regional price divergence has triggered substantial cross-border milk leakage, as farmers divert tankers to out-of-state buyers offering immediate cash premiums. Union heads stressed that having engaged in eight months of inconclusive dialogue with state authorities, immediate price harmonization is mandatory to halt the defection of dairy farmers from the cooperative fold.
The three-day ultimatum places immense political and administrative pressure on the state leadership, which must navigate producer survival against urban consumer blowback. While a retail hike of ₹8 per litre coupled with a ₹3 increase in direct state incentives would immediately restore dairy farm solvency, passing substantial price increases ahead of festive seasons risks igniting urban household discontent. Nevertheless, with 16 district milk unions standing united, the standoff underscores how climate volatility, feed grain inflation, and cross-border competition are forcing structural price adjustments across South India’s organized dairy sector.
Source: Udayavani
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