Milk Farmer

Karnataka Cooperative Milk Producers’ Federation Limited (KMF) intends to lift the value of milk by 3 rupees per litre. On April 25, two weeks after Cooperative Minister S T Somashekar refused to approve the proposed hike, KMF Chairman Balachandra Jarkiholi wrote to Chief Minister Basavaraj Bommai. According to KMF officers, Jarkiholi met with the CM earlier this week to make the request.

In an announcement launched to the media, the chairman acknowledged that KMF was compelled to lift the value as a result of its enter prices had risen within the earlier two years. Nandini milk is the most affordable available on the market. Every different model is no less than $8 dearer. Most milk manufacturers, together with Amul, have raised their costs.

Jarkiholi acknowledged that the extra 3 can be used to pay its suppliers. Two of those would go to farmers, whereas one would go to brokers, the federation, and milk cooperative societies. Officials, then again, declare that there are different elements. The demand for milk promoting brokers is essentially the most urgent.

“Of all the milk industry players, KMF charges the lowest commission.” Even amongst premium manufacturers, our cost is decrease than that of others. While personal dairies cost as much as $5 per litre, we are able to pay solely $1.07. This might trigger our brokers to defect to personal gamers. Increasing the fee quantity is the one strategy to maintain our flock collectively,” stated a senior official.

“One of the reasons for the lower commission payment is that KMF’s operating costs are higher than others.” The staff-to-volume ratio is greater than in different firms. For the 81 lakh litres of milk collected per day, we’ve got 15,000 workers, which signifies that every worker handles a median of solely 540 litres. However, some personal firms have one worker who can deal with as much as 1,2000 litres. “Their operating costs are obviously lower than ours,” the officer defined.

Another motive is that KMF has not been in a position to convert all of its procurement into gross sales since its inception.

“We collect approximately 81 lakh litres per day but only sell approximately 60 lakh litres.” During the lockdown, this was diminished to round 40 lakh litres. “Everything has weighed us down,” stated an officer in control of advertising.

According to officers, the chairman was compelled to go to the CM after the cooperation minister rejected the proposal for a milk value improve. Senior KMF officers met with their counterparts within the Cooperation Ministry 3 times. According to a senior official, a proper proposal was despatched to the Minister, who declined it. “Our chairman attempted, but failed, to persuade the Minister.”

Balachandra Jarkiholi maintains that the hike is solely for the good thing about farmers. “Otherwise, why would we raise the selling price?” Farmers are coping with crop loss and different points. “If we can pay an extra $200 to a farmer who gives us 100 litres per day, he will be helped to that extent,” he defined.

“Milk is a necessary commodity.” “Increasing its price will have an impact on the common man, who is already under pressure from price increases,” farmers’ chief Sidagouda Modagi stated. “KMF should reduce its processing costs by fine-tuning its management, stop wasteful spending, and plug leaks.” The KMF claims that each time it raises costs, farmers will profit. That, nonetheless, just isn’t the case. Because of its inefficiency, they’re compelled to lift their costs. “By dragging farmers into this issue, the common man believes farmers are to blame for the increase in milk prices,” he stated.

KMF collects milk from almost 23,000 cooperatives of varied sorts in 2.5 lakh villages and cities. The turnover of India’s second-largest product cooperative, after the Gujarat milk cooperative federation, is predicted to be Rs. 19,800 crore in 2022. Its 28 lakh members earn roughly Rs. 22 crores per day, or Rs. 78 per particular person. Its procurement, nonetheless, stays low, with a median of 32 litres per village.

“Increasing procurement has not been our focus thus far, but we hope to work on it,” Jarkiholi stated. “We are working on projects to promote new cow and bull varieties, as well as eight other projects using the private-public-partnership (PPP) model.” “Once these are resolved, we will move on to other issues,” he stated.

First revealed on: 29 Apr 2022, 07:03 IST



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