The Karnataka Milk Federation (KMF) is struggling with unsold milk powder (2,100 tons) and butter (800 tons), leading to potential losses of ₹80 crores. Farmers in Kolar, the state’s second-largest milk-producing district, are urging the government to intervene, as they have not received incentive payments for five months.
The Kolar-Chikkaballapur Milk Cooperative, with 1,200 self-help groups and daily production of 600,000 liters, is seeing reduced demand, forcing surplus milk into powder production, which is also not selling. Milk powder costs ₹240/kg to produce but is being sold below cost, further deepening losses.
With ₹44 crores in pending incentives for Kolar farmers alone, they demand immediate government action to stabilize the industry and prevent further financial strain.
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