Bhubaneswar: The state-owned Odisha State Cooperative Milk Producers` Federation Limited (Omfed) has decided to increase prices of milk by Rs 2 per litre from Sunday, official sources said on Friday.
With increased tariff, the consumers now have to pay Rs 24 instead of Rs 22 for a litre of double-toned milk while toned milk will cost Rs 26 against the existing price of Rs 24 per litre.
The price rise is not applicable for the consumers in Rourkela dairy area, Joda, Barbil and Koira areas, they said.
Omfed had last increased milk prices in October 2011. "Milk prices in the state are the less compared to other states in the country.
We have to pay remunerative price to milk farmers, besides the cost of production has also gone up. Of the Rs 2 hiked per litre, Rs 1.75 will be given to farmers for their produce," Omfed CMD Saswat Mishra said.
While the farmers were getting Rs 16.75 per litre of milk, now after increase in the tariff, they would be entitled to get Rs 18.50 to Rs 23 per litre depending on the quality of milk, they said.
Omfed procures about 4.5 lakh litres of milk every day to produce about five lakh litres of milk and other milk products.
About 3,600 milk co-operative societies undertake procurement activities.