Milk Price Hike `inevitable’ says Reddy, Will Yeddy Bite Bullet ?

Special Correspondent
Daijiworld Media Network - Bangalore

Bangalore, Feb 11: Going by the statement made by KMF chairman  Somashekar Reddy, who incidentally is the brother of the politically powerful Bellary mining lords and ministers Gali Janardhana Reddy and Gali Karunakara Reddy, on Wednesday, the Nandini Milk prices will go up byu Rs 3 to 4 a litre form March 1.

But state cooperation minister Laxman S Savadi, who is the minister in charge of KMF, has indicated that the State Government ``is yet to take a final decision.’’

He, however, made it clear that `` a hike in the price of Nandini milk was inevitable on account of decline in the milk production as well increase in the prices of fodder. “

A decision on increasing the price of the milk will be taken only after consultation with Chief Minister B S Yeddyurappa and KMF Chairman G Somashekar Reddy,the minister said.

The quantum of the hike and the date from which the hike would come into effect
would only be decided after a meeting with chief minister and the KMF chairman on Friday or Saturday, he said.

Savadi said the government has asked KMF to present a detailed proposal on the price hike taking care to ensure that the consumer, already reeling under spiraling prices of all essential commodities, were not unduly burdened. ``We need to look after the interests of farmers as also the consumers. The government has to do a delicate balancing act,’’ he said.

But with the Karnataka high court directing the State Election Commission (SEC) to complete the Bruhat Bangalore Mahanagara Palike elections on or before March 30, it is doubtful whether the Yeddyurappa will dare to go in for a hike in the price of Nandini Milk at this juncture because such a move was likely to have a cascading effect on the hotel prices.

Apart from affecting the thousands of daily-wage earners and those relying on hotels for their refreshments, hike in milk prices would seriously affect the ruling BJP as the housewives were unlikely to take kindly to such a move especially when elections to the prestigious BBMP are round the corner. The opposition parties can definitely be counted to oppose the hike in milk prices by espousing the cause of the common man.

Therefore, it is highly unlikely to expect the government to go in for the hike at least until after the BBMP polls.

The KMF chairman on Wednesday said that the price of Nandini milk would behiked by Rs 3 to Rs 4 from March 1. Revision of milk price, which is currently Rs. 16 to Rs 22 a litre depending on the fat content, was last taken up by KMF in November 2007 by Rs 2 a litre.

The minister explained said hike was essential as producers were burdened by rising production costs which make dairy farming unviable. The benefit of price hike would be shared between the farmers and the KMF in theratio 70:30. KMF’s attempts to increase prices were stalled last year by the Government, which instead announced Rs 2 a litre as incentive for farmers.