K'taka CM directs milk federation not to reduce fixed price of procurement

CM's directive comes in the wake of Bengaluru Milk Producers' Union announcement of a special incentive of Rs 2.85 per litre of milk from April 1 to May 31 due to low milk production

Karnataka Chief Minister Siddaramaiah has instructed the Karnataka Milk Federation (KMF) not to reduce the milk procurement price fixed by the government for producers.

"One cannot cut the price suddenly. Any such decision should be taken only after discussing it with the government," the Chief Minister told the Managing Director of Karnataka Milk Federation according to a government statement.

"If the price is cut, the farmers will suffer. This point should be kept in mind," he added.

The Chief Minister's directive comes in the wake of Bengaluru Milk Producers' Union (BAMUL) announcement of a special incentive of Rs 2.85 per litre of milk from April 1 to May 31 due to low milk production during summer.

The BAMUL green fodder has become available due to good rains in the districts, resulting in the increased production of milk. For this reason, an order was issued to reduce the incentive by Rs 1.50.

Ahead of the recent Assembly elections, there was a row after Gujarat based milk cooperative Amul announced its decision to enter Karnataka market to supply its milk and curd. Congress and other groups had lashed out at the th the then Bharatiya Janata Party government for allowing Amul to sell fresh milk and curd in Bengaluru, alleging that it would hurt the business of the local brand Nandini.

The row erupted after Union Home Minister Amit Shah in December last year called for cooperation between the cooperative-model-based dairy companies -- Amul and Nandini.