6 months ago
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The Karnataka Milk Federation (KMF) effected a steep summation of astir 15% connected the terms of its fashionable product, Nandini ghee, from Wednesday.
A kilogram of ghee that was being sold astatine ₹610 has been accrued to ₹700. Similarly, the terms of food has been revised from ₹544 per kg to ₹570 per kg, a emergence by astir 4.78%.
KMF said the hike was successful a bid to support up with marketplace trends and besides guarantee continuity of outgo of ₹4 per litre to the farmers.
The federation had reduced the outgo of ghee from ₹650 per kg to ₹610 per kg aft the caller taxation slabs successful the Goods and Services Tax successful September. The past hike was effected successful the opening of 2025. The KMF, connected an average, sells astir 2,500 tonnes of ghee each month.
Passed connected to farmers
“Since April 2025, erstwhile beverage terms was accrued by ₹4 per litre, we person not reduced the procurement terms for farmers. We passed connected the full magnitude to the farmers. It outgo america astir ₹4 crore a day. Since a unchangeable outgo is being given, beverage procurement has not gone down arsenic well. The hike is to guarantee continuity successful the outgo to farmers,” KMFmanaging manager B. Shivaswamy said.
On an average, the regular procurement remained astatine 1 crore litres. Milk procurement successful November past twelvemonth averaged 89 lakh litres daily.
To offset losses
He said that the hike volition assistance KMF offset losses successful conversion of beverage to skimmed beverage pulverization (SMP). Currently, helium said, that astir 15 lakh litres of the 1 crore kg being procured from farmers are being converted to SMP portion astir 65 lakh litres are being sold arsenic retail and bulk milk. Another 12 lakh to 13 lakh litres are being utilized to nutrient beverage byproducts.
“The prevailing marketplace terms of SMP is astir ₹240 to ₹250 per kg whereas the break-even outgo is astir ₹260 oregon above. About 8 lakh litres are being supplied to Ksheera Bhagya scheme. The KMF volition beryllium capable to retrieve a portion of the outgo with the ghee terms hike,” helium added.
Justifying the hike, another KMF authoritative said that the terms of ghee oregon food had not been revised precocious though the planetary terms had changeable up. Currently, a kilogram of food successful a 25-kg bulk container successful the planetary marketplace is astir ₹560, the authoritative said, adding that contempt the summation Nandini ghee is among the cheaper ghee disposable successful the market.
Amul whitethorn follow
“The outgo of ghee sold by backstage dairies are inactive higher. Though Amul is selling ghee astatine ₹640 per kg, it is besides expected to travel KMF. While Amul had raised the terms of ghee successful different markets, it did not summation the terms successful Karnataka due to the fact that KMF ghee was cheaper,” the authoritative said.
“The request for ghee is much but merchandise availability is less. We besides request to accommodate to marketplace conditions. Amul maintains dynamic pricing for its products,” sources added.
