Farmers reject milk price hike, but demand higher incentive

Bengaluru: A row is brewing between Karnataka Milk Federation (KMF), the govt and dairy farmers over the price of milk with chief minister Siddaramaiah appearing in favour of raising prices, producers resisting the move and the federation wanting an even steeper price hike.
The crux of the issue is the rise in input costs for dairy farmers which they say had made the business unviable.While they want an increase in incentive which the govt pays them, they do not want it to be funded via a hike in retail prices.
Amid discussions involving 15 milk unions, Siddaramaiah said he would decide on a proposed price hike after consulting senior KMF officials. "If retail prices are hiked, it will be on the condition that KMF sends the additional money directly to milk farmers," Siddaramaiah said.
KMF had increased prices by Rs 2 in June, although it added 50ml extra to each one-litre packet. But milk unions want prices to be hiked by at least Rs 5 per litre. If implemented, the current price of Rs 42 per litre could rise to Rs 47.
Although KMF is technically an autonomous body and is free to set its own prices, it typically consults the govt for political considerations. Additionally, there are reservations among unions about passing the entire price increase to producers, with suggestions to allocate only Rs 3 of a potential Rs 5 increase to farmers.
Milk unions are also under strain due to a glut in production. Some unions, including those in Mandya, Kolar, and Raichur, have reduced procurement price by Rs 2 and are urging the CM to allow KMF to raise the retail price and share benefits with milk producers.
"There are many issues to be addressed before deciding on increasing the retail price. We have sought a meeting with the CM and will arrive at a decision soon," said BP Bheema Naik, KMF chairman.
The proposed price hike has ignited widespread debate among producers, who argue that an increase in retail prices would be detrimental. They are requesting a procurement price of Rs 50 per litre, asserting that this should be achieved without raising retail prices.
In support of their demands, milk producers plan an ‘Vidhana Soudha Chalo' protest in collaboration with farmer organisations like Karnataka Prantha Raitha Sangha. They are also pushing for subsidised cattle feed.
"A hike in prices of Nandini milk is not desirable since it was increased only recently. But producers should get a fair price," said PR Suryanarayana, convener, Karnataka State Milk Producers Farmers Federation.
Currently, average procurement price by milk unions is Rs 32 per litre, complemented by a govt incentive of Rs 5. Congress had promised in its election manifesto to increase incentive by Rs 2. But milk producers are pushing for a Rs 5 hike in incentive and an Rs 8 increase in procurement price.