Milk to be dearer by Rs 5

KOCHI: Keralites will have to pay more for milk with the Kerala High Court on Thursday upholding Milma’s decision to hike the milk price by Rs 5 per litre. Considering a petition by Milma (Kerala Co-operative Milk Marketing Federation ltd) challenging the state government’s decision to intervene  in the milk price hike, Justice P N Ravindran quashed the order by the Registrar of Dairy Development directing Milma to revoke its decision to increase the milk price."The state and registrar of Diary Co-operative Society have no right or authority to interfere with the decision taken by Milma to increase the procurement and selling price of milk. There is no material on record to indicate that the registrar has acted in furtherance of the purposes of the Kerala Co-operative Societies Act or for implementing government policies for the benefit of the members of the federation and the general public,’’  the court held.The petitioner contended that the state government or the registrar does not have the jurisdiction to intervene in the decision taken by the federation. The decision to hike the milk price was taken after considering various aspects, including the reports submitted by the N R Unnithan Committee.Milma further pointed out that the government does not interfere with the functioning of other similar societies.“The approval of the government or the registrar is not required to fix the price of milk. The high range dairy Co-operative society, Chengulam is selling milk at Rs 30 per litre. Other similar societies are selling milk at higher prices and the registrar has not intervened, which is discriminatory,’’ they submitted.The state government argued that Milma does not have the power to increase the price without the approval of the state government, as milk is an essential commodity.The court opined that as per its bylaws, Milma’s board of directors has the power to decide the price of milk and the rate of commission to be paid to primary societies for procuring milk and other dairy products.The court pointed out that the Unnithan committee had recommended the price to be increased to 25 per litre. It is not disputed that pursuant to the said report, the selling price of milk was increased last year to the existing rate which is Rs 22 for double toned milk and Rs 23 for pasteurised milk.It has been mentioned in the report that dairy farmers now get only Rs 18.40 per litre, while the cost of production in 2010 was Rs 20.06. The dairy farmers were getting a price far below the cost of production. Even after the proposed increase they will get only Rs 22.60, the court observed.The court further said that the state government’s decision will not better the social and economic status of dairy farmers. If the stand taken by the government is accepted, dairy farmers will have to suffer. The state or the registrar cannot regulate the working of a society.There is no merit in the contention of the govt, the court said.