Bengaluru’s dairy sector is preparing for a surge in milk production, termed as a ‘white flood’, due to unusually heavy pre-monsoon rainfall in May. Karnataka has experienced a significant 24% increase in rainfall, with the trend expected to continue into the rainy season, as per IMD forecasts indicating a 106% increase between June and September. While this surplus is a relief after drought-stricken months, it poses concerns over oversupply.
The Karnataka Milk Federation (KMF) may encounter challenges in procuring excess milk, potentially leading to decreased demand and adverse impacts on milk prices. Experts anticipate a substantial rise in average daily production, surpassing the normal output of 85 lakh litres observed in 2018-19. Authorities are urged to devise strategies to mitigate potential distress faced by both milk producers and traders.
The looming glut could also affect government incentives for farmers. Delayed disbursal of incentives, typically Rs 5 per litre, could strain dairy farmers financially. The demand for a hike in incentives by Rs 2 remains unanswered by the government, aggravating the situation.
MK Jagadish, managing director of KMF, notes a rise in procurement from 75 lakh litres to 88 lakh litres daily and anticipates surpassing the one crore-litre mark. Efforts are underway to align procurement with increased supply.
Pressure mounts to boost sales amid private agency competition. KMF plans to enhance milk powder production, which can be stored for six months and released strategically. Additionally, KMF may seek to procure more from the government for schemes like Ksheera Bhagya and explore expansion into Mumbai, Chennai, and foreign markets.
