Increase in diesel prices leading to rise in transportation costs and funds needed to augment infrastructure
have contributed to the decision. However the prices are still lower compared to neighbouring States, sources said.
Meanwhile, the state government sought to steer clear of the decision, saying it was left to the milk unions to take a call on the prices.
"We can't interfere. We have told them (KMF) that they have to survive on their own and mobilise funds on their own", Animal Husbandry Minister T B Jayachandra told reporters.