Daijiworld Media Network - Udupi (MS)

Udupi, Jun 21: "Accumulation of milk deposit has increased considerably in the Dakshina Kannada Milk Producers' Federation. More than 5 lac kg of milk is received every day by the federation. Coronavirus pandemic has had a profound effect on the sales of milk and milk products. In order to resolve the issue, it is decided to give one rupee less per litre for the milk that is bought from the milk producers," said Raviraj Hegde, president of the federation.

Hegde further said, "Nearly 25 per cent fall is noticed in the sales of milk and milk products in the state of Karnataka. In the month of March, the rate of fatless milk powder was Rs 340 per kg. Now the same is reduced to Rs 160 per kg. In the coming days, this is expected to fall further down. The rate of butter in the market has also seen a fall. The federation will have a stock of 9.5 lac kg of butter during September end."

"The stock of skimmed milk powder and butter has increased considerably in the godowns of milk federations as the schools have not yet reopened. Due to lack of space, now the same is stocked in private godowns paying heavy rent.

"Rs 30 crore reduction in turnover of milk and milk products has taken place in the federation in the first three months of this financial year. This is a reduction of 25 per cent from the normal business. If the same situation continues, the turnover of the federation will be down by Rs 120 crore and the federation will incur a loss of Rs 20 crore," he added.

"In order to tackle the COVID-19 pandemic situation, the buying rate of milk is reduced from Rs 2.20 to 4.70 among the various milk federations in the state. It is inevitable to reduce Rs 1 per litre to the milk producers from June 21, in order to put up with the present crisis," he maintained.