Following a hike in milk price by Rs. 4 a litre, the Hassan Milk Union has decided to increase the procurement price by Rs. 2 a litre. Milk producers supplying milk to the Hassan union will get Rs. 21 a litre, which does not include the support price of Rs. 4 a litre being paid by the State government.
H.D. Revanna, chairman of the union, said at a press conference here on Wednesday, “Although the milk price has been increased by Rs. 4 a litre, the union will be hardly getting Re. 1 and fifty paise a litre, after adjusting the commission paid to retailers and the expenses incurred on conversion of excess milk procured. We have decided to give Rs. 2 a litre by adding fifty paise from the union’s account.”
Every day, the Hassan union collects around 8.6 lakh litres of milk. Of that, only Rs. 1.5 lakh litres of milk is sold in across Hassan, Chikmagaluru and Kodagu districts. A major portion of the milk procured goes for conversion. “We are spending a huge amount on conversion. An ultra-high-temperature processing unit has been set up with a capacity of two lakh litres in Hassan. The UHT processed milk is being supplied to different States every day. Besides, milk products worth Rs. 100 crore have remained unsold with the Karnataka Milk Federation. Considering all these factors, we have decided to give the best possible rate to milk producers,” he said.
Mr. Revanna took presspersons to the UHT plant, where milk is processed and packed in tetra packs. “The Good Life products can be stored for six months. There is a demand for tetra packs from different corners of the country. Hassan union has already sent truck-loads of tetra packs to Assam, Jammu and Kashmir and other States in the country,” he said.
The union is setting up an ice-cream production unit. “The ice-cream plant will be ready for operation by the end of 2016. We are also planning to increase the production capacity of UHT milk from two lakh litres to four lakh litres a day with an additional investment of Rs. 30 crore,” he said.
Mr. Revanna said that when he took over as president of the union in 1995, its annual turnover was only Rs. 25 crore. Now, it had crossed Rs. 850 crore. Soon, the union would be recording an annual turnover of Rs. 1,000 crore, he said.Managing Director Gopalaiah was present.