KMF to reduce fodder price to rescue inflation hit dairy farmers
By Shivakumar G Malagi/Aug 19
In Sridharagadde Primary Milk Producers Cooperative Association in Bellary, the association where Karnataka Cooperative Milk Producers' Federation Ltd (KMF) chairman G Somashekhar Reddy having a primary membership, farmer Hanumanthappa gets Rs 15 a litre for the milk he produces, compared with Rs 13 last year.
The price of cattle feed he buys was Rs 940 per bundle of 100 kg now. It was Rs 870 a year ago. Inflation has helped the already high fodder prices shoot up, leaving milk farmers gasping.
"Today, a litre bottle of mineral water costs as much as milk. Unfortunately, we are earning next to nothing given the high cost of production," he says about the state's largest agricultural commodity that provides bread and butter to the around 24 lakh dairy farmers, most of them are landless agricultural labourers.
The Sridharagadde Association story repeats itself in every village cooperative milk unions. Narsimha, who supplies 120 litres milk to the Bellary-Raichur Coop Milk Producers' Union Ltd, says that the average price that he gets is Rs 14 to Rs 15. That price too, is dependent on the fat content, which in turn depends on the fodder.
According to him, husk, which cost Rs 700 a quintal a few months ago, is now priced at Rs 1,100, green feed has gone up to Rs 900 a quintal from Rs 700, blackgram thrash from 700 to Rs 800 and maize from Rs 700 to Rs 900 per quintal. These apart, the labourers are demanding Rs 2,500 to Rs 3000, a month compared with Rs 1,000 last year.
"The rising cattle-feed cost is making it difficult for us to sustain our dairy operations. We take loans or obtain advances from private dairies, which only pushes us into a trap," said Narsimha of Sangankal village.
Having seen the effect of rising cattle-feed cost on the milk production, newly elected Board of Directors of KMF has offered booster to `inflation-hit’ dairy farmers by reducing fodder prices up to Rs 500 per tonne which came close on the heels of state government’s recent intervention to cushion the dairy producers against inflation by raising the support prices marginally by Rs 2.
Newly elected KMF chairman G Somashekhar Reddy told Deccan Chronicle that slow climb in milk prices and the rising fodder prices are pinching the small and marginal farmers in the state, who own 75 per cent of the livestock. Fodder prices have shot up since 2000, thanks to exports and central excise duty on molasses, which is used to make fodder. The recent inflationary trends have only added to the woes.
KMF has set up four cattle-feed plants across the state and produces two varieties of cattle feed- one is regular and another is special fodder with added nutrition. Every month around 30,000 tonnes of cattlefeed is supplied to farmers on a ‘no profit, no loss' basis,” While the price of `special’ cattle feed being supplied by KMF to the farmers is 11 per kg, that sold by private players is Rs 13.50 per kg.
Mr Reddy stated that prices of `regular cattle feed’ was hiked to Rs 9,400 per tonne from Rs 8,700 and `special cattle feed’ went up to Rs 11,000 per tonne from Rs 9,600 previous year.
“The rising fodder prices sure to play spoiler with the target of KMF becoming No.1 milk federation in the country. Hence, the newly elected body of KMF decided to reduce cattle feed price that was hiked during H D Revanna regime by Rs 500 per tonne. Since, Federation has earned Rs 3.96 crore net profits previous year and this profit will be returned to farmers by reducing the fodder prices, even though production cost remains unchanged.”, he remarked.
Disclosing that new rates of cattle feed will come in force from August 21, he said, “in addition to state government’s support price of Rs 2 per litre, farmer will get Rs 50 paisa incentive for buying a kilo of cattle feed from the KMF totaling a minimum of Rs 15.50 earning to a litre of milk produced.”
The price of cattle feed he buys was Rs 940 per bundle of 100 kg now. It was Rs 870 a year ago. Inflation has helped the already high fodder prices shoot up, leaving milk farmers gasping.
"Today, a litre bottle of mineral water costs as much as milk. Unfortunately, we are earning next to nothing given the high cost of production," he says about the state's largest agricultural commodity that provides bread and butter to the around 24 lakh dairy farmers, most of them are landless agricultural labourers.
The Sridharagadde Association story repeats itself in every village cooperative milk unions. Narsimha, who supplies 120 litres milk to the Bellary-Raichur Coop Milk Producers' Union Ltd, says that the average price that he gets is Rs 14 to Rs 15. That price too, is dependent on the fat content, which in turn depends on the fodder.
According to him, husk, which cost Rs 700 a quintal a few months ago, is now priced at Rs 1,100, green feed has gone up to Rs 900 a quintal from Rs 700, blackgram thrash from 700 to Rs 800 and maize from Rs 700 to Rs 900 per quintal. These apart, the labourers are demanding Rs 2,500 to Rs 3000, a month compared with Rs 1,000 last year.
"The rising cattle-feed cost is making it difficult for us to sustain our dairy operations. We take loans or obtain advances from private dairies, which only pushes us into a trap," said Narsimha of Sangankal village.
Having seen the effect of rising cattle-feed cost on the milk production, newly elected Board of Directors of KMF has offered booster to `inflation-hit’ dairy farmers by reducing fodder prices up to Rs 500 per tonne which came close on the heels of state government’s recent intervention to cushion the dairy producers against inflation by raising the support prices marginally by Rs 2.
Newly elected KMF chairman G Somashekhar Reddy told Deccan Chronicle that slow climb in milk prices and the rising fodder prices are pinching the small and marginal farmers in the state, who own 75 per cent of the livestock. Fodder prices have shot up since 2000, thanks to exports and central excise duty on molasses, which is used to make fodder. The recent inflationary trends have only added to the woes.
KMF has set up four cattle-feed plants across the state and produces two varieties of cattle feed- one is regular and another is special fodder with added nutrition. Every month around 30,000 tonnes of cattlefeed is supplied to farmers on a ‘no profit, no loss' basis,” While the price of `special’ cattle feed being supplied by KMF to the farmers is 11 per kg, that sold by private players is Rs 13.50 per kg.
Mr Reddy stated that prices of `regular cattle feed’ was hiked to Rs 9,400 per tonne from Rs 8,700 and `special cattle feed’ went up to Rs 11,000 per tonne from Rs 9,600 previous year.
“The rising fodder prices sure to play spoiler with the target of KMF becoming No.1 milk federation in the country. Hence, the newly elected body of KMF decided to reduce cattle feed price that was hiked during H D Revanna regime by Rs 500 per tonne. Since, Federation has earned Rs 3.96 crore net profits previous year and this profit will be returned to farmers by reducing the fodder prices, even though production cost remains unchanged.”, he remarked.
Disclosing that new rates of cattle feed will come in force from August 21, he said, “in addition to state government’s support price of Rs 2 per litre, farmer will get Rs 50 paisa incentive for buying a kilo of cattle feed from the KMF totaling a minimum of Rs 15.50 earning to a litre of milk produced.”
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