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Feed price hike hits Indian dairy farmers

08-09-2008 | |
Feed price hike hits Indian dairy farmers

The Indian government’s much-hyped milk incentive may not really benefit farmers. It has been offset by the Karnataka Milk Federation’s (KMF) decision to hike the price of cattle feed.

Even before the government could implement its promise
of giving a concession of Rs 2 per litre to milk producers, the KMF has hiked
the price of cattle feed by Re 1 per kg since August 11.

“We are facing
acute shortage of maize and other raw materials used in production of cattle
feed. Year-on-year prices of critical input materials – de-oiled rice bran,
maize and cottonseed – have risen by 27% while we have increased cattle feed
price by only 12.5%,” KMF chairman H D Revanna said, adding the decision was
made to reduce losses.

A final decision on hike in milk prices will be
taken at the KMF’s annual general body meeting on September 12. KMF chairman H D
Revanna said they had abided by the government’s directive and stalled the hike
to avoid confrontation. “The rules are clear. We need not take permission from
the government to hike prices,” he said.

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