This Article is From Dec 16, 2010

Nandini milk price likely to go up by Rs 3 a litre

Bangalore: Get ready to shell out more money for dairy products, as milk producers have started demanding a hike in their rate cards. "They are demanding a hike because all the costs have risen, from the rearing of cows to labour charges. Also, the rise in petrol and diesel prices has increased the overall costs," said managing director of Karnataka Milk Federation (KMF).

"They have been demanding a price hike for 2-3 months now," he said, adding that a final decision will be taken only after a meeting with the board. "Anyway, we will not be able to increase the price during the Panchayat election season," said Premnath.

A litre of Nandini milk currently costs `19. If the prices increase as per the demands of the milk producers and the Union, the cost may go up to ` 21- 22. However, if the hike comes into effect, it is the home-makers who will feel the maximum pinch. "Now if milk prices also shoot up, it is going to cause a crunch in our budget," said Nina Banerjee, a mother of two. "I buy 4 litres of milk everyday, but if the prices are going to rise, then I may have to cut down on it," she said.

Many home-makers, especially those having children, feel that since dairy products are a major part of their daily meal, they will continue to purchase the same quantity, but will cut down in other areas, irrespective of the price rise. "Just because the prices go up, we cannot cut down on essential food products. If anything, we can make budgetary changes in other areas," said Manjula Rajan, a part-time working professional.

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