Haveri Milk Producers Disappointed as Union Cuts Payout Despite Price Hike
Even as the Karnataka government raised milk prices by ₹4 per litre to benefit dairy farmers, the Haveri Cooperative Milk Union has reduced payments to producers by ₹3.50 per litre, leaving farmers with only a 50-paise increase per litre.
At a March 21 meeting, the union’s administrative board decided to lower procurement rates, effective March 28, citing financial losses of ₹20 crore. This move came just before the government’s price hike, which was set to begin on April 1.
Union president Manjanagouda Patil defended the cut, stating that the union only sells 20,000 litres of the 1.35 lakh litres it procures daily. The ₹4 per litre government increase only applies to this portion, while the remaining milk is used for products like Khreera Bhagya milk powder.
If the union were to procure all milk at the new rate, it would lose ₹6.4 lakh per day, totaling ₹16.5 crore annually, Patil explained. Given the union’s existing debt, he argued that the reduction was necessary for survival.
Acknowledging farmer dissatisfaction, Patil assured that union directors will meet with the district minister soon to discuss possible solutions.
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