News last update:6 Aug 2012

Feed price hike hits Indian dairy farmers

The Indian government's much-hyped milk incentive may not really benefit farmers. It has been offset by the Karnataka Milk Federation's (KMF) decision to hike the price of cattle feed.

Even before the government could implement its promise of giving a concession of Rs 2 per litre to milk producers, the KMF has hiked the price of cattle feed by Re 1 per kg since August 11.

"We are facing acute shortage of maize and other raw materials used in production of cattle feed. Year-on-year prices of critical input materials - de-oiled rice bran, maize and cottonseed - have risen by 27% while we have increased cattle feed price by only 12.5%," KMF chairman H D Revanna said, adding the decision was made to reduce losses.

A final decision on hike in milk prices will be taken at the KMF's annual general body meeting on September 12. KMF chairman H D Revanna said they had abided by the government's directive and stalled the hike to avoid confrontation. "The rules are clear. We need not take permission from the government to hike prices," he said.

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