KMF has made a small but significant change to the cost of its Nandini brand of milk that it has failed to declare. The cost of the regular milk was increased from Rs 29 per litre to Rs 33 per litre in January. When the price was Rs 29, the half litre packs – which comprise 60 per cent of the KMF milk sold – were priced at Rs 15 instead of Rs 14.50 to avoid the problem of 50 paise coins.

KMF compensated this adjustment by increasing the quantity of milk from 500 ml to 520 ml.

This volume addition was not incorporated by the federation when it increased the charge to Rs 33 in January. The half litre pack is priced at Rs 17 instead of Rs 16.50, again due to the shortage of 50 paise coins. But instead of the earlier compensation of 20 ml of additional milk per half litre, the volume has been retained at 500 ml this time around. So each time a consumer buys a half litre pack, paying an additional 50 paisa may seem a small amount to take notice of. But if KMF sells over 30 lakh litres of milk daily, its profits rise by Rs 15 lakh every day.

Nandini Milk
                        Nandini Milk

KMF chairperson P Nagaraju, confirming the change in the volume and pricing, said, “We cannot say it is just 50 paise. We have to account for each paisa. It had not come to my notice that 20 ml was reduced now. I will see that this is corrected immediately.”

KMF sells 10 different kinds of milk but ‘Nandini Pasteurised Toned Milk’ constitutes the bulk of its sales. In 2014-15, KMF procured on an average 58.69 lakh litres of milk per day from nearly 13,000 milk cooperatives. The average milk sale was 32.38 lakh litres per day. In 2015-16 so far, these figures have increased to 66.45 lakh litres and 34.39 lakh litres per day correspondingly.