Bengaluru:
The Karnataka Cabinet on Thursday approved an increase of Rs 8 per litre in the price of milk, with the revised rate set to come into effect from November 1.
The decision was announced by Minister Krishna Byre Gowda after the Cabinet meeting chaired by Chief Minister Siddaramaiah.
Of the total increase, Rs 7 per litre will go directly to milk producers, while the remaining Re 1 will be allocated to milk cooperatives.
The decision is expected to benefit lakhs of dairy farming families across the State, who have been demanding better remuneration for their produce in view of rising production costs.
Explaining the Cabinet’s decision, Byre Gowda said milk producers and their representatives had repeatedly raised the issue with the government. Members of different political parties in the Legislative Council had also called for steps to improve the income of dairy farmers.
Milk producers had staged protests demanding an increase of at least Rs 10 per litre. Representatives of cooperative milk societies had also met the Chief Minister, the Animal Husbandry Minister and the Cooperation Minister to press their demand.
The government, however, decided on an increase of Rs 8 after discussions in the Cabinet.
The Minister said the matter had been discussed at two or three Cabinet meetings before the decision was taken unanimously.
Under the revised arrangement, the procurement price paid to farmers will increase from the existing Rs 35 to Rs 42 per litre.
The State government’s existing incentive of Rs 5 per litre will continue. Consequently, farmers will receive a total of Rs 47 per litre, including the government incentive.
The additional Re 1 per litre allocated to cooperatives is expected to support their operations and strengthen the milk procurement and distribution network.
Karnataka has a substantial dairy cooperative network, with milk procurement playing an important role in the rural economy. The government said the increase was intended to provide financial support to producers facing higher costs of cattle feed, fodder, transportation and maintenance.
The revised price structure will take effect from November 1.