Private dairies’ higher prices hit milk unions in Karnataka

Private companies are reportedly paying between Rs 42 and Rs 44 a litre in some border areas, while Karnataka’s milk unions are purchasing milk at around Rs 31 to Rs 34 a litre after conducting quality checks.

Chikkaballapur: Milk cooperatives in Karnataka’s border districts are witnessing a decline in procurement as private dairy companies from neighbouring states offer farmers higher prices for their produce.

Private companies are reportedly paying between Rs 42 and Rs 44 a litre in some border areas, while Karnataka’s milk unions are purchasing milk at around Rs 31 to Rs 34 a litre after conducting quality checks. The substantial difference has encouraged several farmers to divert their milk to private dairies.

The impact is being felt particularly in Chikkaballapur and Kolar districts. Several border taluks, including Chikkaballapur, Gudibande, Bagepalli, Gauribidanur, Bangarpet and Srinivaspur, have emerged as key procurement zones for private dairy companies.

Karnataka’s cooperative milk unions follow prescribed quality parameters while procuring milk. Milk with lower fat or solid-not-fat content can either be rejected or purchased at a reduced price. Private companies operating in border areas are allegedly willing to buy such milk at higher rates, making them more attractive to producers.

Milk collection in Kolar and Chikkaballapur districts has reportedly fallen from around 11 lakh litres a day to nearly nine lakh litres. The decline has caused concern among cooperative societies dependent on regular milk supplies.

Farmers have also raised concerns over the rising cost of cattle feed and other inputs. Despite increasing expenditure on maintaining dairy cattle, the procurement price has not increased proportionately, affecting the viability of dairy farming.

Dairy sector representatives have warned that the situation could worsen if Karnataka’s milk unions do not revise procurement prices. They said the issue needs to be addressed along with any proposed increase in retail milk prices.

Chimul president Manjunath Reddy said farmers needed better financial returns to continue dairy farming.

“Farmers are facing rising expenses for cattle feed and other inputs, but the price they receive for milk has not kept pace. Unless the procurement price is increased, dairy farming will become increasingly difficult in rural areas,” he said.

The competition from neighbouring states has therefore emerged as a challenge for Karnataka’s cooperative dairy network, particularly in border districts where producers can choose between cooperative societies and private buyers offering higher prices.