Milk producers of Shivamogga demand higher procurement price

In a press conference here on Monday, the forum appealed to the Shivamogga Cooperative Milk Union – which has jurisdiction over Shivamogga, Davangere, and Chitradurga districts – and the State government to increase the procurement price by at least ₹20 per litre.Jayaram Gondi, honorary president of the forum, said that producers currently receive ₹30.26 per litre, which they contend is insufficient given rising input costs.“With fodder, labour, and other operational expenses rising sharply, dairy producers are unable to sustain profitability,” he said.Lokesh G., president of the forum, said the production cost for one litre of milk – including land, labour, fodder, and other inputs – currently stands at around ₹45 per litre. “We receive only ₹30. Even if the cooperative buys at ₹45 per litre, we face losses. The support price from the State government is our only income,” he said.The forum has raised concerns about delayed disbursement of the State government’s support price of ₹5 per litre, which producers have not received for the past six months. “If we receive the ₹5 support price as promised, it would help cover our losses,” Mr. Lokesh said.Beyond the procurement price increase, the forum has sought enhancement of the support price from ₹5 per litre to ₹10 per litre. The forum members cited daily labour costs of approximately ₹600 per worker as a significant expense burden.The producers also criticised government spending on guarantee schemes, arguing that direct investment in the farming sector would be more beneficial. “The government should focus on supporting the farming sector rather than schemes that do not reach producers,” said Mr. Lokesh.The forum has additionally called for administrative reorganisation of the cooperative structure through the establishment of a separate union for farmers in Chitradurga and Davangere districts. Currently, 60% of milk in the union’s collection area originates from Shimurgandha, while the remainder comes from Chitradurga and Davangere districts.“The union currently spends significantly on transportation, as vehicles must travel across Chitradurga and Davangere to procure and supply milk. A separate union would reduce these costs substantially, allowing savings to be directed to farmers,” Mr. Gondi said. Published - June 29, 2026 06:56 pm IST