For the first time, Karnataka Milk Federation (KMF) will use a part of the milk price hike towards setting up a corpus fund to compensate farmers who suffer losses owing to death of cattle. KMF sources said that 40 paise of the ₹2 hike per litre would go into the fund.
This initiative comes in light of the State government not warming up to the idea of having a cattle insurance scheme. The KMF had suggested a scheme entailing a ₹120-crore burden on the State exchequer. Sources in the milk federation said that of the estimated 25 lakh cattle, about 20,000 cattle deaths that could qualify for compensation are reported annually. “Modalities of the compensation and how to administer the corpus fund will be worked out now,” a source said.
The distribution of the ₹2 hike among all the stakeholders associated with the KMF will bring cheer to milk society employees as well as agents who deliver milk in the market. As much as 40 paise will be given as commission to agents and 20 paise will be given to the village-level milk society employees. “Both have been long-standing demands put to the KMF,” the source said.
