Karnataka milk prices hiked by Rs 4 per litre, to be effective from April 1
The Karnataka government has announced a Rs 4 per litre increase in milk prices, effective April 1.
FollowThe Karnataka government has announced a Rs 4 per litre increase in milk prices, effective from April 1. Chief minister Siddaramaiah had earlier refrained from confirming the hike, stating that a final decision would be taken after cabinet discussions on March 27. The Karnataka Milk Federation (KMF) had proposed a Rs 5 per litre hike, citing rising production costs, increased wages, and higher transportation expenses.
However, the state government ultimately approved a Rs 4 increase.
On Monday, the Karnataka Cooperative Milk Producers' Federation Limited and Managing Directors of District Milk Unions had approached CM Siddaramaiah, asking to increase the price of milk by Rs 5 per liter.
During the meeting, the Chief Minister clarified that the government's firm stance is that if milk prices are increased, the amount should be transferred completely to farmers and not to the unions.
To encourage dairy farming
During the meeting with Karnataka Milk Federation (KMF) officials and ministers from the animal husbandry and cooperation departments, Siddaramaiah emphasized that cooperative societies and the KMF exist solely to uplift farmers, not to function as profit-driven enterprises.
KMF officials laid bare the financial struggles of several milk unions, citing Ballari’s alarming Rs 1.4 crore deficit as a pressing concern. They also highlighted the stark contrast in milk prices between Karnataka and its neighboring states, underlining the need for a price correction to sustain operations.
Addressing these concerns, Siddaramaiah firmly instructed KMF and milk unions to tighten their belts by slashing administrative and overhead costs by 2.5% within the next three months. Furthermore, he mandated that future expenditures must be capped at 2% of their respective budgets. To further curb financial strain, he directed them to scale down contract-based hiring.
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