Rs 3 Milk price hike may not benefit farmers

Kollam: Kerala Co-operative Milk Marketing Federation Ltd (Milma) on Monday hiked the price of packaged milk by Rs 3 a litre. However, dairy farmers have disputed the federation's claim that Rs 2.40 out of this hike would go to farmers’ kitty.

The farmers claim they are not likely to benefit as the subsidy of Rs 300 for Milma cattle feed had been stopped since June while the price of other feeds including straw had been soaring. 

Milma had earlier effected a Rs 10 hike in milk price in two phases after High Court affirmed the federation had the sole right to decide the price for its packaged milk and products. The recent hike has been justified by the federation as a move to contribute more to the revenue of farmers in the dairy industry.

“The claims by Milma are false as the price of cattle feed has been going up as the federation has stopped the subsidy of Rs 300 that was given since November 2012,” said R. Rajesh, a dairy farmer.

Milma had a few months back cut Rs 30 from its feed price per packet which had caused other feed producers including Kerala Feeds to lower prices before it completely withdrew the subsidy on June 1. This has contributed to an overall hike in prices of feeds including coconut fibre and straw, which are linked to the milk rate.

With the new hike in milk prices, the half litre pasteurised double toned milk that comes in yellow cover will now cost Rs 18 and pasteurised toned milk in blue labelled cover will cost Rs 19.