A healthy monsoon in Karnataka’s neighbouring States has wreaked havoc on the export of milk from Kolar. Kolar and Chickballapur Milk Union Ltd. (Kochimul) is struggling to cope with a massive drop in bulk sale of milk to Kerala and Puducherry, which have not been purchasing the essential commodity since May.
Kerala used to purchase about 40,000 litres of milk a day from Kochimul, and Puducherry 20,000 litres. But this has come to a standstill as good rain in those places has translates into increased milk production. “As their needs were fulfilled by their own dairies, they have stopped bulk purchase,” said a Kochimul official.
Kochimul is now relying on bulk supply only to Andhra Pradesh and Maharashtra. In all, Kochimul used to send 1.2 lakh litres of milk daily to these States and the Union Territory. But it has lost almost half the market now.
“The reduction in bulk sales has forced us to divert the excess milk for powder production,” said Kochimul president N.G. Byatappa. To balance the loss incurred owing to this, Kochimul has reduced the procurement rate by ₹1 a litre. “We are now paying farmers ₹24 a litre in place of ₹25 in the past,” he added.
Powder stock on the rise
As much as 2.84 lakh litres of milk is being sent for powder making. Since the shelf life of the milk powder is one year, the anxiety of the union has increased on the piling up of powder stock.