Slump in demand leaves dairy sector in Karnataka in the lurch

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In a huge blow to farmers inKarnataka, milk unions have decided to slash purchase price by Rs 1.5 per litre from June 1, owing to plummeting consumption amid the pandemic-induced lockdown.

Ironically, low demand has been compounded by a glut in production because of decent rains. The Karnataka Milk Federation (KMF), the apex body of milk unions, receives about 87 lakh litres daily as against normal inflow of

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73 lakh litres. Daily sales, on the other hand, have dipped from 60 lakh to 49 lakh litres.

KMF, which is under pressure to continue procurement, has appealed to the Centre to allow milk unions to borrow under the interest subvention scheme on the lines of its package for last years lockdown when the milk unions availed Rs 800 crore.