Milk procurement prices in Karnataka differ significantly across the state’s 15 milk unions, despite the Karnataka Milk Federation (KMF) maintaining a uniform selling price statewide. Each milk union determines its procurement prices based on profit margins, expenditure, facilities, and ongoing projects, leading to discrepancies. While some unions pay up to ₹33.40 per litre, others pay as low as ₹29.10 per litre.

The recent decision by the Kolar-Chikkaballapur Cooperative Milk Union to reduce the procurement price by ₹2 per litre has triggered protests among dairy farmers, who are already grappling with rising production costs and delayed incentive payments. Farmers are demanding a review of procurement prices and timely payments to alleviate their financial stress.

Key Insights:

  • Disparity in Procurement Prices: Each milk union sets its prices based on local economic factors, resulting in varying procurement rates across the state.
  • Government’s Role: The Karnataka government recently increased milk prices by ₹2 per sachet, adding 50ml more milk, to benefit farmers.
  • Farmer Protests: The reduction in procurement prices by the Kolar-Chikkaballapur Cooperative Milk Union has led to widespread protests among farmers.
  • Operational Challenges: Milk unions must balance their finances by adjusting procurement prices, considering factors like transportation costs and facility maintenance.