Stalling the Karnataka Milk Federation’s (KMF) plan to hike the price of milk by Rs 3 a litre, Chief Minister Basavaraj Bommai on Monday asked officials to work out a win-win formula for both farmers and consumers.

Bommai chaired a meeting with KMF chairperson Balachandra Jarkiholi and officials from the animal husbandry department.

“I said no to hiking the price of milk by Rs 3,” Bommai said.

During the meeting, Bommai said he obtained full information on the matter, including milk prices in other states. “I obtained details on the cost of production. I asked why they want a price hike. I asked them what their overheads are. I also asked them what action they’re taking to plug pilferage,” he said.

“Farmers should not suffer losses. At the same time, overheads need to be reduced and consumers shouldn’t be burdened. I’ve asked them to come up with a formula. They’ve sought two days to consult experts,” he said. “Let’s see what formula they come up with.”

Bommai added that milk prices are “dynamic and keep changing”. He said it is not “as straight forward as we think”.

Last week, the KMF announced a Rs 3 hike in milk prices, which had to be rolled back following Bommai’s intervention. The KMF had said that processing and maintenance costs in dairy farming had increased over the last two years. Apparently, the cost of materials used to prepare food for cattle has gone up by at least 30 per cent.

By the end of June 2022, the KMF collected 94.20 lakh litres of milk a day. This has come down to 78.80 lakh litres as many small farmers have given up dairy farming due to rising costs, according to the KMF.

When asked, Bommai defended the government’s “interference” in the KMF’s affairs. “The KMF is a part of the government. They can’t be 100% independent. Why shouldn’t we interfere when we’re giving subsidy?”