Kolar: In a major festive gesture for the dairy community, the regional milk unions of Karnataka have announced a significant “Ugadi gift” for producers, raising milk procurement prices to help offset the skyrocketing costs of animal husbandry.
The Kolar District Co-operative Milk Producers’ Federation (Komul) has taken the lead by announcing a Rs 2 per litre increase in the price paid to farmers. This generous hike follows a similar move by the Bangalore Co-operative Milk Union (BAMUL), which recently raised its procurement rates by Rs 1 per litre.
For the dairy farmers of Kolar, this means a direct boost to their bottom line. The procurement price, which previously stood at Rs 35.40 per litre, has now been elevated to Rs 37.40 per litre.
Kolar District Milk Union President K Y Nanje Gowda stressed that the price hike is part of a broader support system. In addition to the per-litre increase, the government has introduced an incentive of Rs 3,000 per acre specifically for farmers growing green fodder. Also, support for purchasing or maintaining cows is being provided in the range of Rs 70,000 to Rs 80,000.
Despite the celebratory nature of the hike, the reality on the ground remains challenging for the agricultural sector. Farmers have been vocal about the “difficult situation” they face due to inflation in basic supplies.
While the price has risen to Ts 37.40, many farmers argue that a minimum of Rs 50 per litre is required to truly sustain a livelihood. The price of essential cattle feed, including cassava and boosa, has recently jumped by Rs 100 per 50 kg bag, eating into the narrow profit margins of local dairies.
The decision to hike prices was seen as unavoidable. Last summer, the union had raised rates by Rs 2. Although the government initially implemented a Rs 4 hike, half of that (Rs 2) was later recovered or adjusted, forcing the current administration to step in with this mandatory Rs 2 increase to keep the industry afloat.
Beyond the price of milk, farmers are now placing new demands on the table. To stabilise the cost of animal feed, there is a growing call for the government to purchase maize directly from farmers, ensuring a steady and affordable supply of nutrition for their livestock.