Bangalore: Brace up for hike in Nandini milk prices

From Our Special Correspondent
Daijiworld Media Network - Bangalore

Bangalore, Jul 19: Nothing comes free. If the Siddaramaiah-led Congress government in Karnataka offered an incentive of Rs 2 per litre to all milk producers and implemented its electoral promise of distributing 30 kgs of rice to all BPL families at Re 1 per kg along with effecting a marginal reduction in the price of diesel, the price of Nandini brand of milk products supplied by the Karnataka Milk Federation is likely to be increased shortly.

Naturally, therefore, the milk consumers across the State and even those having their brew of coffee or tea from hotels and restaurants must be prepared for a price hike as and when the KMF and all the dairies coming under it decide to increase the prices of Nandini milk.

Animal husbandry minister T B Jayachandra, who is also handling the law and parliamentary affairs portfolio, indicated in the State Legislative assembly that the state government was contemplating to increase the price of various varieties of Nandini Milk to take up infrastructure development woks in dairies of Karnataka Milk Federation (KMF) and milk unions in various districts.

The minister said the KMF was also considering a proposal to increase the number of outlets selling Nandini milk products across the country.

In a reply to C T Ravi of the BJP during the question hour in the Legislative Assembly, Jayachandra said milk prices were low in the State compared to other states.

Moreover, more funds needs to be mobilised for development of infrastructure, particularly cold storages, he said.

Seeking to justify the move to hike the Nandini milk prices, the minister explained that the milk price per litre is Rs 33 in Kerala, Rs 27 in Tamil Nadu, Rs 29 in Maharashtra, Rs 31 in Goa and Rs 32 in Gujarat.

A final decision on the quantum of the hike and the date for effecting it would be taken after consultations with all stakeholders, he said.

Though the KMF has a turnover over of more than Rs 5500 crore a year, its profit margin was less than Rs 50 crore
 
The turnover was insufficient for development of infrastructure and upgradation of technology as about Rs 300 crore would be required for development of infrastructure, Jayachandra said.

The KMF has been procuring 55 lakh kg of milk per day in July and a decision has been taken to supply of milk (150 ml) to 35 lakh anganawadi kids and 62 lakh schoolchildren from 1st standard to 10th standard from next month.

The decision to supply milk to school children and anganawadi kids required about four lakh litres of milk per day.

At present, the KMF has been exporting milk products to Indonesia and Bangladesh and a decision was taken to export to Sri Lanka also in the coming days.

The KMF has also been supplying milk to Delhi Milk Scheme and Mother Dairy of Kolkata, he said.