The Karnataka Cabinet on Thursday reportedly approved an ₹8 per litre increase in Nandini milk prices, with ₹7 of the additional amount going to milk-producing farmers and Re 1 to dairy cooperatives. The revised rates will come into effect on November 1, according to a state minister.
The decision follows protests by milk producers and demands from dairy cooperatives for better returns amid the financial difficulties faced by farmers.
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Speaking to reporters after the Cabinet meeting, Gowda said the government had considered the demands raised by farmers and their representatives before finalising the increase, PTI news agency reported.
Farmers to receive ₹42 per litre, government incentive to continue
Gowda said farmers currently receive around ₹35 per litre, apart from the state government's incentive of ₹5 per litre. With the latest revision, the price paid to farmers will rise to ₹42 per litre, while the existing government incentive will remain unchanged.
This will take the total amount received by farmers, including the incentive, to ₹47 per litre.
{{/usCountry}}This will take the total amount received by farmers, including the incentive, to ₹47 per litre.
{{/usCountry}}"This means farmers will receive a total of ₹47 per litre, including the government incentive. This will benefit lakhs of farming families," he added.
Farmers had demanded ₹10 per litre hike
The minister said the issue had been discussed at two or three Cabinet meetings before Thursday's decision. He added that representatives of dairy cooperatives had met the chief minister, the minister concerned with animal husbandry and the cooperation minister during the farmers' protests.
The representatives had sought an increase of at least ₹10 per litre, Gowda said. However, the Cabinet decided on a lower revision after deliberations.
"Although farmers demanded an increase of ₹10 per litre, it was felt that such an increase cannot be done. After discussions in the Cabinet today, under the chairmanship of the chief minister, we decided on an increase of ₹8 per litre, of which ₹7 will go to the farmers and Re 1 to the milk cooperatives," he said.
Cabinet takes unanimous decision
Gowda said members of all parties in the Legislative Council had called for measures to support farmers, while milk producers had taken to the streets to press their demands. Dairy cooperatives had also sought a price revision.
"Given the crisis faced by farmers, members of all parties in the Legislative Council had called for measures to support them. Milk producers themselves had taken to the streets in protest, and the cooperatives had also pressed for an increase," Gowda said.
"Respecting these demands, the Cabinet has today decided to increase the price paid to milk-producing farmers by ₹7 per litre. In addition, the cooperatives will receive an increase of Re 1 per litre. Thus, the total increase will be ₹8 per litre."
The minister said the Cabinet had reached a unanimous decision after considering the demands and the need to support milk producers.
(With inputs from PTI)