While the Lokayukta court has ordered a probe into irregularities in the purchase of cattle feed by the Karnataka Milk Federation (KMF), it has come to light that the cattle feed (Cotton Seed De-Oiled Cake – CSDOC) it purchased from two companies in Andhra Pradesh and Tamil Nadu was adulterated and reportedly unfit for cattle. The irregularities have allegedly caused a loss of over Rs. 40 crore to the KMF.
An analysis of three samples of “feed ingredients” done at a national-level dairy research institute in Bangalore has shown that the samples did not have the required percentage of crude protein (41.2 per cent) but had other ingredients which were over 150 per cent in excess. P. Nagaraj, director of KMF, who along with two farmers, is fighting the legal battle in the Lokayukta court, had collected three samples of CSDOC from the KMF’s Rajanukunte plant and submitted them for analysis.
The board of directors of Karnataka Co-operative Milk Federation Ltd (KMF) has decided to decrease the cost of Nandini Cattle Feed by Rs 300. The decision comes after taking into consideration the increase in cost of milk production to the farmers. The price reduction comes in only for a period of three months between January 1, 2012, and March 31, 2012. There are two types of cattle feed developed by the KMF. One is the Cattle Feed Type 1 which is priced at Rs 10,300 per tonne and the second is the Nandini Bypass Cattle Feed costing Rs 11,700. Being typically a small farmer-led with small holdings and few animals with low productivity, the KMF has come forward to support the dairy farming community in the state.
Uses/benefits of Kmf Cattle Feed
Now for both the products, the KMF has reduced Rs 300 per ton price of the cattle feed. The reduction in cost has taken place only to provide the benefit to the farmers who are already reeling under crisis of rising prices of feed among other inputs, according to D Srinath, director, marketing, KMF. Further, KMF is also toying with the plan to increase the cost of milk which is currently at Rs 21 per litre for its Nandini brand toned milk.
The price increase has been envisaged with the Union government’s efforts to hike the petrol costs by Re 1 from January 1. Since transportation costs constitute a major chunk of the pricing mechanism, the KMF, might have to resort to increase rate per litre of milk, he stated. KMF has 13 milk unions spread across 30 districts of Karnataka and is the second-largest dairy federation in the country after Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets Amul products, but is ranked first in south India as for its milk industry enterprise.
The KMF has been supplied 28,650 tonnes of “adulterated” cattle feed. It had placed an order July 2012 for 28,650 tonnes of CSDOC at Rs. 20,650 a tonne initially and after 15 days at Rs. 27,100 a tonne. The market price of cottonseed hull is Rs. 4,000 a tonne. “This purchase of adulterated feed at an exorbitant rate (total cost over Rs. 69 crore) would not have been possible without the connivance of officials and KMF chairman G. Somashekhar Reddy. What is more startling is that the same adulterated material is being distributed to farmers as feed pellets. Farmers buy them from the KMF because of the trust them have in the federation. The adulterated feed will do more harm than good to the cattle.
Prices of Kmf Cattle Feed