Mangaluru: The Dakshina Kannada Cooperative Milk Producers Union Limited (DKMUL) announced an incentive hike of 50 paise for milk societies, increasing the payment from Rs 1 to Rs 1.5 per litre of milk procured, effective Jan 1. This initiative aims to support milk societies that are experiencing declining profits due to reduced milk procurement over the years, said DKMUL president Sucharitha Shetty.He told reporters on Tuesday, that the hike is expected to cost DKMUL an additional Rs 55 lakh monthly.
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DKMUL currently procures 3.4 lakh litres of milk daily from 51,138 active members across 749 societies. It sells 4 lakh litres of milk and 78,000 kg of curd daily, and produces 75 tonnes of paneer, 153 tonnes of ghee, one tonne of sweets, and flavoured milk monthly. Any milk shortfall is met by sourcing from neighbouring unions.
From Jan 1, the following changes take effect, including society margins increased by 25 paise to Rs 1.1 per litre, farmers’ welfare trust contribution raised by 5 paise, milk procurement price for 4.5 fat- 8.5 solids not fat (SNF) milk increased by 51 paise per litre to societies and 21 paise per litre to farmers. Incremental rates for every 0.1% fat raised by 3 paise per litre.
Shetty said that additional efforts to support dairy farmers include selling Nandini cattle feed at Rs 25,300 per tonne, with 5,500 metric tonnes sold monthly. The union also provides silage at Rs 7.5 per kg and facilitates the procurement of superior-breed livestock from Tamil Nadu, offering a subsidy of Rs 16,000 per cow for transportation, insurance, and cattle feed.
DKMUL also runs various schemes, including a 75% subsidy on cattle insurance, rearing female calves and green fodder schemes, assistance for dairy units, cattle transportation, and milk yield enhancement, compensation for farmer deaths, cattle theft, and shed damage.
Under the milk yield enhancement programme, Rs 4.9 crore was allocated, alongside Rs 9.5 crore for milk incentives and Rs 3.2 crore for quality bonuses. Additionally, Rs 3 crore is set aside for cattle insurance. He said that the government has delayed the payment of incentives to dairy farmers for the past four months. Approximately Rs 6 crore remains unpaid to farmers and they have appealed to the KMF to expedite the release of the pending incentives.
By Dec 2024, DKMUL reported transactions worth Rs 870 crore and expects a profit of Rs 7.7 crore, Shetty said.
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