Minister hints at imminent hike in milk prices in Karnataka

Tumakuru (Karnataka): Karnataka Cooperation Minister K N Rajanna on Saturday hinted at an imminent hike in milk prices.

He said that a meeting would be called soon to decide on this.

"I have brought to the notice of the chief minister that in the entire country there is no state that procures milk from farmers at a lower price than us. Similarly there is no state that sells the milk to consumers at a lower price than us," Rajanna said.

Speaking to reporters here, he said, "We procure milk at Rs 31 per litre and after installing National Dairy Development Board's (NDDB) software, farmers may be getting Rs 2 per litre more, on an average Rs 31. We sell it at Rs 45 per litre...but no state in the country procures at Rs 31 and sells at Rs 45. In other states they sell at Rs 58-60 (per litre)."

"I brought this to the notice of the CM and requested that -- after looking at the prices in other states, fix the procurement and selling price at the same level. In that case, the difference was about Rs 10 per litre. The CM said if the price is hiked so much, people will not keep quiet, but I convinced him to look at the welfare of rural people (largely farmers)," he added.

Noting that there is thinking to increase the price at which milk is procured from farmers, the minister said, the CM has said that the increased amount should completely be passed on to famers.

"He (CM) has said that a meeting will be called in Bengaluru to decide on this," he said.

Addressing an event in Magadi on Friday, Chief Minister Siddaramaiah had also hinted at a hike in milk prices.

Noting that there has been a demand for increasing the price of milk by Rs 5 per litre, he said a meeting will be called soon to take a decision on increasing the milk price in the interest of the farmers.

Pointing to criticism in the media about the proposal to hike milk prices, Rajanna said, if transaction of money increases in the villages, the country's GDP could increase.

"The hike will not give even Rs 1 profit to the state government, it would rather benefit the Centre as the unions (milk unions) will make a profit and pay higher taxes," he said.