Milk producers under DKMUL will receive an extra ₹1 per litre as a special incentive from Feb 21 to May 31, 2026, to cushion rising input costs and fodder shortages.
DKMUL President Raviraj Hegde stated that:
- The union will disburse ₹4.1 lakh extra per day
- Total payout during the incentive period ≈ ₹4 crore
- The move addresses green & dry fodder shortages and high silage costs
- Objective: help farmers sustain production during peak summer stress
Revised Milk Payment Structure
The additional ₹1 is over and above the existing ₹1.5/litre quality incentive (for milk with 4.4% Fat & 8.5% SNF).
Revised quality milk rate: ₹41.7 per litre
That’s a clear push toward:
- Higher fat & SNF milk
- Quality-based procurement
- Summer supply stabilization
Current Procurement Situation
- Present procurement: 4.1 lakh litres/day
- December procurement: 4.2 lakh litres/day
- Daily demand: ~5 lakh litres/day
- Shortfall met from:
- Hassan Milk Union
- Shivamogga Milk Union
- Mandya Milk Union
Read More: Gokul Dairy raises buffalo milk price by ₹2 per litre
Seasonal drop is typical during summer due to:
- Heat stress
- Reduced feed intake
- Fodder scarcity
What This Really Means (Strategic View)
This is classic cooperative economics:
- Summer → Procurement dips
- Demand steady (or rises)
- Import from other unions → higher logistics cost
- Solution → Incentivize local producers
Instead of raising consumer prices immediately, DKMUL is strengthening the supply side first.
For a dairy technologist , this is a live case study in:
- Seasonal milk fluctuation management
- Incentive-based procurement models
- Quality-linked payment systems
- Inter-union milk balancing within Karnataka’s cooperative network
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