Bengaluru: Chief minister Siddaramaiah on Monday remained non-committal on a proposed milk price hike. After an hour-long meeting with the Karnataka Milk Federation (KMF) and ministers from the animal husbandry and cooperation departments, he said a final decision would be taken after discussions with his cabinet colleagues at the next meeting on March 27.
However, Siddaramaiah emphasised that any potential increase must directly benefit farmers.
KMF has proposed a Rs 5 per litre hike, citing rising input costs, increased wages, and higher transportation expenses. Sources indicate that the state govt may approve an increase of Rs 2-Rs 3 per litre.
KMF officials have informed the CM that three of the state’s 15 milk unions were on the verge of reporting losses, with Ballari already running into a deficit of ₹1.4 crore. They pointed out that KMF’s milk prices remain lower than those in neighbouring states.
Acknowledging the price disparity, Siddaramaiah reiterated that the federation and cooperative societies are there to support farmers, not to generate profits. “If a price hike is considered, farmers must be the beneficiaries to encourage higher milk production,” he said.
The CM also directed KMF and milk unions to cut overhead and administrative costs by 2.5% within the next three months, ensuring that future expenditures do not exceed 2% of their budgets.
Additionally, he instructed them to limit the hiring of contract workers to bare minimum.
