Date:18/08/2008 URL: http://www.thehindu.com/2008/08/18/stories/2008081857860100.htm

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KMF defers decision on price hike

Staff Reporter

BANGALORE: The Karnataka Milk Federation (KMF) has decided to defer its decision to increase the prices of Nandini milk temporarily.

It had decided to increase the prices of toned and double toned milk by Rs. 2 from Monday.

This is in the wake of the intervention by the Animal Husbandry Department which asked the KMF to put its decision on hold.

“We have decided to temporarily defer the decision to increase the prices of milk. The respective unions, considering their cost of production had passed the resolution to increase the milk prices,” Managing Director of KMF Ramalinga Gowda told The Hindu.

The KMF’s proposal included increasing the prices of double toned milk from Rs. 14 to Rs. 16, toned milk from Rs. 16 to Rs. 18, HCM milk from Rs. 18 to Rs. 20 and full cream milk from Rs. 22 to Rs. 24. Mr. Gowda said: “Procurement, transportation, processing and distribution cost of milk has gone up. Besides, the administrative cost has increased after payment of arrears to the employees according to fifth pay commission’s recommendation.”

Meanwhile, KMF chairman H.D. Revanna said the council of managing directors and presidents of 13 district milk federations had suggested that the federations were suffering losses to the extent of Rs. 1.50 a litre and the farmer was losing 50 paise a litre owing to the increasing overheads.

“The KMF is losing Rs. 2.63 crore every month on account of increasing overheads. Veto of the Government on the price increase on Saturday was nothing but political interference,” Mr. Revanna said.