Karnataka CM defends milk price hike to protect farmers during drought
Chief Minister D K Shivakumar said the price increase is necessary to safeguard dairy farmers as milk production declines.
Karnataka Chief Minister D K Shivakumar on Saturday defended a decision to increase milk prices, stating the move is essential to protect the interests of farmers during a severe drought. According to reports by Hindustan Times, the Karnataka Cabinet approved an Rs 8 per litre increase across all milk categories on Thursday.
The Chief Minister explained that the hike is required because milk production has fallen due to drought and farmers have been moving their milk to neighbouring states where prices are higher. He noted that milk producers had requested an increase of Rs 12 per litre.
Of the Rs 8 increase, Rs 7 will be paid to farmers, which raises the procurement rate from Rs 35 to Rs 42 per litre. The remaining Re 1 is intended for the operational costs of milk unions. Including a Rs 5 government incentive, farmers will receive Rs 47 per litre.
Shivakumar stated that the revision, which takes effect on November 1, was driven by rising costs for labour, fuel, packaging, and fodder. He added that the decision aims to ensure farmers have enough money to provide food for cattle.
The Chief Minister mentioned that the price revision is expected to provide dairy farming families with an additional annual income of between Rs 1,850 crore and Rs 2,100 crore. He also clarified that the government only intervened in milk prices, while decisions regarding Nandini curd prices rest with the Karnataka Milk Federation.