Increased Nandini Demand Boosts Profits for Chikkaballapur Dairy Cooperative

The Chikkaballapur District Milk Producers Cooperative Union (CHIMUL) has experienced a financial upswing, reporting profits of approximately ₹2 crore. This positive development is attributed to the rising demand for products under the Nandini brand, managed by the Karnataka Milk Federation, particularly in urban and semi-urban areas.

CHIMUL's financial success allows it to offer an additional payment of ₹1.50 per litre of milk to its supplying farmers, supplementing the existing price of ₹36.90 per litre. This incentive is set to continue until May and comes on top of the ₹5 per litre subsidy provided by the Government of Karnataka, raising the total payment to farmers to ₹41.90 per litre.

According to CHIMUL President Manjunath Reddy, these measures enhance the cooperative's ability to offer competitive procurement rates within the state, benefiting farmers who rely on milk production as a primary source of income amid variable feed and production costs.

The cooperative model's profit-sharing mechanism ensures that value generated through the supply chain is redistributed back to producers, linking consumer demand directly to farmer income. This approach helps stabilize rural livelihoods while maintaining a consistent supply of milk and dairy products.

The incentive announcement reflects how local milk unions are capitalizing on improved market performance to reinforce farmer loyalty and strengthen procurement networks. As demand for packaged milk and value-added dairy products rises, cooperatives like CHIMUL are poised to play a pivotal role in sustaining India's producer-centric dairy economy.