Udupi: Reduction of Re 1/ltr in milk procurement price

Udupi: Due to the negative impact on the sale of milk and milk-based products, the Dakshina Kannada Cooperative Milk Producers’ Union Limited has decided to reduce by Re 1 the procurement price of milk, said Union President Raviraj Hegde.

5 lakh kilograms of extra milk has already been stocked by the Union and since March there has been a 25 per cent fall in sales. Additionally, due to excess stock of milk powder across the country, their prices have dropped from Rs 340 per kilogram to Rs 160. The market price of butter has declined too and by the end of September, there will be an additional 9.5 lakh kilograms of butter in stock.

The sale of skimmed milk powder has reduced due to the delay in the reopening of schools.

Due to lack of storage space, the Union is paying double the rent to private storage facilities to keep the extra stock.

A total of Rs 30 crore of reduced turnover has been reported in the past three months. If this situation continues then the annual turnover will be reduced by Rs 120 crore and the Union will face financial losses of upto Rs 20 crore, said Hegde.

Other Milk Unions have reduced their procurement price by Rs 2.20 to Rs 4.70. So even the district milk union will be reducing the price by Re 1 per litre from June 21, added Hegde.