The Hindu : Front Page : Defiant KMF resolves to increase milk price by Rs. 2

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Saturday, Sep 13, 2008
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Defiant KMF resolves to increase milk price by Rs. 2

Staff Reporter

Government says no, invokes Cooperative Societies Rules

BANGALORE: Striking a defiant note on the contentious milk price increase issue, the Karnataka Milk Federation (KMF) on Friday resolved to increase the prices of all varieties of Nandini milk, barring double-toned milk, by Rs. 2, even as the Government directed KMF and its 13 unions to drop the proposal.

The increase, if implemented, will also affect the price of toned milk, the staple of most middle-class families, which will cost Rs. 18 as against the current price of Rs. 16.

Announcing this to presspersons here, KMF Chairman H.D. Revanna said the price increase would be put on hold till he met Chief Minister B.S. Yeddyurappa.

The KMF resolved to increase the prices of toned milk, full-cream milk, standardised milk, Shubham and others by Rs. 2. The price of double-toned milk, however, would be untouched, he added. He said: “We will convince the Chief Minister on the need for such an increase as the unions are expected to incur an accumulated loss of around Rs. 25 crore by the end of the financial year. The accumulated losses till the end of July have been around Rs. 6 crore. The price of cattle feed alone has gone up by 27 per cent.”

Meanwhile, the Department of Cooperation, through an order issued on Wednesday, directed the KMF and unions to drop the price increase proposal. Invoking powers vested with the Government in the Karnataka Cooperative Societies Rules, the order said the directive was issued in public interest. “The proposal to increase the price is not appropriate as milk is one of the important products consumed by people,” the order said.

Nandini milk is cheaper than milk sold in other States. A comparative statement of milk prices released by KMF shows that while toned milk costs Rs. 16 in Karnataka, it is Rs. 18 in Tamil Nadu, Rs. 19 in Kerala, Rs. 21 in Andhra Pradesh and Rs. 22 in Mumbai and Goa. Nandini is also cheaper by two to three rupees compared to milk sold by private dairies in Karnataka.

Overall, the price difference between Nandini and others is as much as between Rs. 3 and Rs. 6.

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