Nandini cuts milk procurement price by Rs 2 per litre, farmers hit

BENGALURU: The Bangalore Milk Union Ltd (Bamul), which sells the Nandini brand of milk in three districts, has cut procurement price from dairy farmers by Rs 2 per litre. While this will not affect consumers, the move has come as a blow to farmers who are already reeling under a poor monsoon and fodder shortage.

Till October 31, Bamul was procuring milk from farmers at Rs 34.15 per litre, but this has been reduced to Rs 32.15 per litre with effect from November 1. Along with the incentive of Rs 5 per litre, farmer, who were getting Rs 39.15, will now be getting Rs 37.15 per litre. The move will affect 1.10 lakh farmers in Bengaluru Urban, Rural and Ramanagara districts.

Bamul president Rajanna explained that the they procure 15 lakh litres of milk daily of which 12 lakh litres is sold as pasteurised milk while the rest is used to make other products including milk powder which is supplied to schools under the Ksheera Bhagya scheme.

“The milk union is facing a loss of Rs 1.85 per litre and so far, it has accumulated Rs 65 crore losses. If this continues, Bamul will be in dire straits. The government has not revised the transportation cost of milk powder for the Ksheera Bhagya scheme”, Rajanna told Public TV.

The government has already declared 11 taluks which come under Bamul’s jurisdiction as drought-affected. With the southwest and the northeast monsoon having failed, farmers are facing a shortage of fodder for cattle and are forking out higher prices. The cut in milk procurement prices has come as another blow for them.