The dairy sector in Bengaluru is bracing for a surge in milk production, termed by experts as a ‘white flood,’ owing to unusually heavy pre-monsoon rainfall experienced in May. Karnataka has witnessed a significant 24% increase in rainfall thus far, with the trend expected to continue into the rainy season, as predicted by the Indian Meteorological Department (IMD), forecasting a 106% increase between June and September. This surplus rainfall is anticipated to lead to an overproduction of milk, primarily attributed to the growth in fodder production.
While the increased rainfall had adversely affected dairy farmers in previous months, concerns arise over oversupply. The Karnataka Milk Federation (KMF) may encounter challenges in procuring the excess milk, potentially leading to a decrease in demand and adversely affecting milk prices.
Experts foresee a significant surge in average daily milk production, potentially surpassing the normal output of 85 lakh liters observed in 2018-19. Authorities have been cautioned to devise strategies to mitigate the impending distress faced by both milk producers and traders.
The looming glut also threatens government incentives for farmers, as the delay in disbursing incentives could strain the finances of dairy farmers. Despite demands from milk producers to increase incentives by at least Rs 2 per litre, the government is yet to respond.
MK Jagadish, managing director of KMF, disclosed that procurement has already risen from a daily average of 75 lakh litres to 88 lakh litres, with anticipation of milk inflow surpassing the one crore-litre mark.
KMF plans to increase milk powder production, which can be stored for six months and released when prices increase. Additionally, KMF may approach the government to procure more milk powder for its Ksheera Bhagya scheme.