Karnataka: Milk price to go up by Rs 4 from January 5

Bengaluru: Milk consumers will have to cough up more so that farmers in the state, most of whom rear cattle, can get a better price for their product.

This seems to be the logic behind the state government’s move to hike milk prices by Rs 4 per litre from January 5, keeping in mind the coming Zilla and Taluk panchayat polls.

The rural population plays a crucial role in deciding the fortunes of candidates in these elections.

Milk producers or farmers will now get an additional Rs 3 per litre, apart from the milk subsidy of Rs 4, announced a few months ago. Farmers were selling milk to various milk unions at Rs 20-22 per litre and after the hike, they will get Rs 24- 26 per litre.

Around six months ago, Karnataka Milk Federation (KMF) had submitted a proposal to the government seeking a hike of '5 per litre in view of the increasing cost of fodder and other inputs.

But, it was kept in abeyance in view of the poll code for the Council elections. The Congress government’s decision to hike prices and help farmers is also necessitated by the fact that its image has taken a severe beating because of the spree of farmer suicides.

To resurrect its image, the Chief Minister has given the green signal to hike milk rates which will burden the urban population but help farmers.

Chairman of KMF, P. Nagaraj told this newspaper that compared to neighbouring states, the price of milk is pretty low in Karnataka.

The milk rate hike would benefit 20 lakh farmers who depended on dairy activity and are in distress due to drought.

In September 11, 2013, the government has increased milk rates by Rs 2 per litre with the current hike coming after 2 years and three months.