'To Help Farmers': DK Shivakumar Justifies Rs 8 Milk Price Hike In Karnataka

Karnataka Chief Minister DK Shivakumar on Thursday defended the decision to increase the price of Nandini milk by Rs 8 per litre, and said it was aimed at preventing losses to farmers.

He also indicated a possible hike in state transport bus fares in the days ahead.

The Karnataka Cabinet on Thursday decided to hike Nandini brand milk prices by Rs 8 per litre. Of this Rs 7 would go to farmers and Re 1 to the cooperatives (Karnataka Milk Federation). The price hike will be effective from November 1.

Karnataka Milk Federation (KMF) markets its dairy products under the Nandini brand.

Speaking to reporters here, Shivakumar said the government had taken the decision after consultations, as the cost of milk production and transportation had increased.

"The demand for a milk price hike has been there for the last couple of years. The price has been increased to prevent losses to farmers. The government is helping farmers, and farmers are important to us," he said.

Asked whether the increase would burden consumers, Shivakumar said the interests of farmers also needed to be considered.

"If there are farmers, we can drink milk. Otherwise, is it possible to drink milk," he asked.

He said the prices of several inputs, including plastic packaging, diesel and petrol, had increased, pushing up transportation costs.

"There was a demand to increase the price by Rs 12 to Rs 15. We took this decision after consulting everyone," he said.

The chief minister said milk prices in Karnataka were lower than those in several neighbouring states, adding that the price difference had also led to milk being diverted to other states.

"People pay Rs 30 to Rs 35 for a litre of water. Compared to neighbouring states, milk prices in our state are lower," he said.

He said the government needed to prevent milk from being routed to Andhra Pradesh and Maharashtra because of the lower prices in Karnataka.

Referring to the demand for Nandini products outside the state, he said Tirupati procured Nandini ghee because of the trust consumers had in the brand.

"There is a high demand for Nandini ghee for Mysore Pak and other products. The government is also providing financial incentives to farmers. This decision was taken because farmers were facing losses," he said.

Shivakumar said legislators across party lines had demanded an increase in milk prices in both Houses of the state legislature, but a decision could not be taken earlier because of MLC elections.

"All MLAs had demanded a milk price hike across party lines in both the Legislative Assembly and the Legislative Council. A decision could not be taken earlier due to elections. Now that the elections are over, the decision has been made," he said.

On the possibility of an increase in bus fares, the chief minister said the state transport corporations had suffered heavy losses and were facing financial difficulties.

"The Transport Department has suffered heavy losses, and there were no funds even for diesel. The government is providing free bus travel for women. Therefore, the Transport Department itself has been asked to take a decision on this matter," he said.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)