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Report into Milk Price Hike Due this Week

09 October 2012

INDIA - An expert committee, entrusted by the Kerala Co-operative Milk Marketing Federation Ltd (Milma) to prepare a detailed report on the proposed price hike of milk and dairy products, is expected to submit its report to the cooperative director board this week.

The Milma director board will take a final decision on the magnitude of the hike based on the recommendations of the 10-member committee. "The board might discuss the report on Monday or Tuesday. In any case, the price hike will be enforced by early next week," a Milma official told Times of India.

According to Milma, it needs to hike the price by at least Rs 8 a litre if farmers are to be given a fair deal. However, sources in the board said the director board was likely to restrict the hike to Rs 5.

Prices of all dairy products and cattle fodder produced by Milma would also see a substantial increase. Milma chairman P T Gopala Kurup has already said that Milma has been struggling to provide cattle fodder to farmers at the present rate. The price of cattle fodder in the open market has registered more than 65% increase in the past few weeks. Milma and Kerala Feeds together cater to only around 50% of the fodder market share in the state. The rise in transportation charges following the fuel price hike has also been forcing Milma to overhaul the price structure of its products.

A high court order had, in 2011, upheld Milma's right to fix and revise the price of its products as and when necessary. Following this, the state's role in decisions on price hike has become nominal. However, the top brass of Milma had met minister for dairy development K C Joseph here last week and apprised him of the reasons for the imminent price hike. The minister too had agreed with Milma's stand on hike.

TheCattleSite News Desk



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