Fixing price of milk our prerogative: Milma

KOCHI: The Kerala Cooperative Milk Marketing Federation Ltd (Milma) has denied the contention of the state government that the Milma had the power only to recommend the price of milk to the government and that the price could be increased only with the approval of the state government since it was a policy matter. “The government’s submission that it is a policy matter which requires the approval of the government and that the fixation of the price of milk is a matter of public interest is not correct,” Milma chairman P T Gopalakurup submitted in an affidavit filed before the Kerala High Court.“As per the bylaws of the federation, its board of directors has the power to fix the price of milk, the rate of commission for primary societies to procure milk and the price of other dairy products marketed by it. Therefore, the averment of the government that the board has only the power to recommend the price of milk is totally incorrect and against the bylaws,” the affidavit said.“The bylaws do not insist that the approval of the government has to be obtained before taking a decision on the price of milk. Besides, the state government had undertaken in the agreement while setting up the Milma that it would not interfere in the fixing of milk price. The submission of the state government that the selling price of milk was not mentioned in the byelaws is totally incorrect. The price structure includes the selling price of milk as otherwise the price structure cannot be determined,” the affidavit said. The affidavit further said that an expert committee constituted by the government had recommended an increase of Rs 5 a litre or a government subsidy for an equivalent amount. The affidavit further said that the government had no direct or indirect share capital in Milma. “The primary objective of Milma is the welfare of  farmers,” the affidavit said.