Bengaluru Milk Union BAMUL Profits ₹60 Crore, Gives Ugadi Bonus to 1.27 Lakh Farmers

BAMUL made a profit of ₹60 crore this year, which is much better than the ₹14.5 crore loss last year. Over 1.27 lakh farmers and staff will get a special Ugadi bonus.
By Newsroom | Business, Bengaluru |

Bengaluru Cooperative Milk Union Limited (BAMUL) has declared a profit of ₹60 crore, a significant turnaround from the previous year's ₹14.5 crore loss. This financial recovery coincides with the announcement of an "Ugadi bonus" for its milk producers and staff. The union aims to procure an average of 24 lakh litres of milk daily, a step up from the current 16 to 18 lakh litres. This comes alongside a projected turnover reaching ₹3,400 crore.

Ugadi bonus from BAMUL to milk producers - 1

A primary component of this "Ugadi cheer" is an incentive of ₹1 per litre of milk supplied by producers between April 1 and March 31. This adds to the existing ₹5 per litre incentive provided by the Karnataka government. Additionally, BAMUL plans to allocate ₹3.45 crore towards supporting 2,300 milk cooperative societies, with each receiving ₹15,000.

Ugadi bonus from BAMUL to milk producers - 2

Beyond the farmers, BAMUL is extending financial benefits to its workforce. This includes a ₹5,000 payment to casual workers, the clearance of ₹4.68 crore in dearness allowance (DA) dues, and the confirmation of employment for workers who have been on a temporary basis for the past three years. These measures are being presented as a reward for contributions to the union's recent growth.

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Ugadi bonus from BAMUL to milk producers - 3

A First for Farmers, Staff

For the first time, over 1.27 lakh farmers and staff are set to receive a direct "Ugadi gift." This initiative is framed as a reward for their efforts contributing to BAMUL's improved financial standing. The overall milk collection has seen an increase, with daily procurement now averaging around 16.5 lakh litres, a rise of 1.5 lakh litres.

Ugadi bonus from BAMUL to milk producers - 4

Technological Undercurrents

The union reports implementing "tech upgrades" aimed at enhancing transparency and providing real-time updates. These include systems described as 'AI' and software from the National Dairy Development Board (NDDB). These advancements are intended to streamline operations and offer better oversight of the milk procurement process.

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Background and Context

The Bengaluru Cooperative Milk Union Limited (BAMUL) operates as a significant player in the region's dairy sector, with its 'Nandini' brand being a prominent presence. The union's financial performance is closely watched, impacting a vast network of dairy farmers and consumers. The announcement of profits and associated bonuses arrives during the Ugadi festival, a period often associated with new beginnings and financial optimism in the region. The reported financial turnaround follows a period of significant loss, making the current profit announcement a notable shift in the union's trajectory. The union has reportedly procured close to 59.39 crore litres of milk from farmers during the recent financial year.

Frequently Asked Questions

Q: Why did Bengaluru Milk Union BAMUL make ₹60 crore profit?
BAMUL made a ₹60 crore profit by increasing milk collection and turnover. They also used new technology to improve operations. This is a big change from last year's ₹14.5 crore loss.
Q: How much bonus will milk producers get from BAMUL for Ugadi?
Milk producers will get an extra ₹1 for every litre of milk they supply between April 1 and March 31. This is on top of the ₹5 per litre incentive from the Karnataka government.
Q: Who else at BAMUL will get a bonus or payment?
Yes, casual workers will get a ₹5,000 payment. BAMUL will also pay ₹4.68 crore in dearness allowance dues. Workers who were temporary for three years will get confirmed jobs.
Q: How many farmers and staff will benefit from BAMUL's Ugadi bonus?
More than 1.27 lakh farmers and staff members will receive a special Ugadi gift or bonus this year. This is the first time such a large group is getting a direct benefit.
Q: What is BAMUL's plan for milk collection after the profit?
BAMUL plans to collect an average of 24 lakh litres of milk every day. This is an increase from the current average of 16 to 18 lakh litres per day.
Q: What technology is BAMUL using to improve its work?
BAMUL is using new technology like AI and software from the National Dairy Development Board (NDDB). These upgrades help make things clearer and give real-time updates on milk collection.