Double blow for Milma; Karnataka's Nandini milk price soars by Rs 4

THIRUVANANTHAPURAM: Amidst the worsening milk shortage in Kerala, Milma received a double blow after the Karantaka government increased milk prices in the state. Milma mostly relied on other states to make up for the shortage in supplies. Milk prices have been increased by Rs 4 in Karnataka. Milma imports one and a half lakh liters of milk from Karnataka every day to meet the state's needs.

The increase in milk prices in Karnataka was due to persistent demands from farmers, various organizations and the Animal Husbandry Department. With this, the price of a liter blue packet of Nandini milk will increase from Rs 44 to Rs 48. The new milk price will come into effect in Karnataka on Tuesday.

The daily milk consumption in Kerala is 16.5 lakh litres, while the local production is only 11.5 lakh litres. The remaining milk requirement is imported from other states. One and a half to two lakh litres of milk are supplied daily from the Karnataka Milk Federation (KMF). Milk is also supplied from the states of Maharashtra and Tamil Nadu as per the requirement. With the increase of Rs. 4 per liter for milk imported from Karnataka, Milma's profit share will plummet in the coming days.

“Haven’t thought about increasing milk prices in the state. The price increase will provide an opportunity for Milma to penetrate other markets,” said K.S. Mani, Milma Chairman.