Milk Unions Set Producer Prices in Districts: Minister

Quick Summary

• Animal Husbandry Minister K. Venkatesh informed the Legislative Assembly that milk unions in Karnataka are autonomous and can set prices payable to milk producers within districts.
• Dakshina Kannada Cooperative Milk Union pays producers the highest price of ₹39.98 per litre, while Belagavi records the lowest at ₹33 per litre.
• variations in pricing are attributed to demand and profitability of respective milk unions.
• Following a ₹4 increase in milk prices:

– Tumakuru pays ₹37/litre,Hassan and Haveri pay ₹34.5,Shivamogga pays ₹34.21, Chickballapur/Kolar pay ₹35.4 each, Bengaluru pays ₹36.15, Mysuru pays ₹36.1, and belagavi continues at the lowest rate (₹33).Other district-level variations include Mandya (₹35.3), Chamarajanagar (₹35.2), Kalaburagi (₹35), dharwad (₹35), Vijayapura (₹33.9), and Ballari (₹34).

• The state average procurement price for milk stands at approximately ₹35.3 per litre.

Indian opinion Analysis
Karnataka’s decentralized approach toward setting procurement prices allows regional flexibility based on demand-supply dynamics and financial viability of local milk unions but leads to important pricing disparities amongst districts such as Dakshina Kannada versus Belagavi or Vijayapura districts (~20% variance). This divergence highlights not just market realities but also structural challenges within a producer-driven setup aiming for equitable growth statewide.

While higher payouts may incentivize robust production ecosystems within profitable regions like Dakshina kannada or Bengaluru’s outskirts-there exists an implicit equity question around how smaller economies sustain fairness/equal operational subsidies maintaining policies continuity expansion