Bengaluru, Nov 15: The Karnataka Milk Federation has withdrawn the decision to hike the prices of milk and curds by Rs 3 that was to take effect on Tuesday, November 15, following instructions from the chief minister’s (CM) office.
The chief minister is now likely to hold a meeting after November 20 to decide on the hike in prices.
As soon as the KMF announced a hike in prices of milk and curds, Chief Minister Basavaraj Bommai reportedly called up KMF chairman Balachandra Jharkiholi to keep the decision of hike on hold.
The KMF had raised the prices of milk and curds in February 2020.
The KMF had cited the increase in processing and maintenance costs in dairy farming during the last two years for the hike in prices of milk and curds.
The KMF officials said the cost of materials used to prepare cattle fodder had shot up by at least 30%.
Also, transport, packaging and electricity costs have also gone up by 20% to 35% during the last two years, the KMF statement said.
The KMF had also given reasons such as lumpy skin disease and adverse weather conditions that had added to farmers’ woes that necessitated the hike in prices of dairy products.
The hike has been put on hold ostensibly because the government seems wary of the public backlash with the assembly elections less than six months away.