KMF Proposes, CM Disposes

The hike in KMF milk prices and the surprise rollback within three hours witnessed on Monday is a poignant commentary on the style of functioning of the Bommai-run State government in Karnataka. It confirms the doubts in public mind that in the scheme of official thinking and decision-making, the bosses are primarily guided by political expediency rather than what the administrative prudence would deserve and demand.

The Karnataka Milk Federation had announced a hike of Rs. 3 over a litre of popular Nandini brand of milk and curd supplied by the KMF. But within hours, Chief Minister who was in Sedam on Monday, ordered a rollback of the new price hinting that a decision would be taken after a meeting is held between him and the KMF chairman after November 20.

Any price hike in essentials of life is unwelcome for the consumers. Milk being a daily need and its production and distribution being a function of the state, is a civic amenity. It is also common knowledge that a civic amenity should be run on the basis of sustainability of the service. Any relaxation or concession that tends to impact its viability endangers its continuance and harms the stakeholders at large.

The KMF, a federation of milk producers in the state, had decided to increase the prices of the milk mainly owing to the fact that cost of basic input in production of milk had gone up and farmers were being dissuaded in supplying the milk to the local KMF units. Reports also indicate that the milk procurement by the KMF had come down from 94 lakh litres a day in June 2022 to 78 lakh litres a day in November.

It was not due to any reduction in production of milk per se. It was so because the farmers in districts bordering other states, were taking their supplies to those states where it fetched higher prices. In fact, the milk supplied to consumers in all surrounding states is priced higher than in Karnataka. The widespread incidence of lumpy disease too had added to the input cost.

The KMF’s decision to hike the price must have been a well-thought out and soundly-discussed decision. The Federation has also clarified that the entire hiked value would be passed onto the farmers and producers. The measure would have benefitted nearly a million producers, each owning between one and three cows.

The decision to defer the price hike is unfair and seems to be motivated by political calculation in view of the upcoming Assembly elections in the State. Even earlier, the decisions by Escoms to hike the power tariff were subject to such calculations. It is a moot point if regulatory agencies and autonomous authorities carry any meaning if the political bosses centralize the decision-making in their hands. It is time to review their role and question if such decisions could synchronise with the whims and fancies of the political bosses