The federation said the AP government has not paid bills for the past four months and it is not possible for it to continue supplies if dues are not cleared. Federation managing director and chief operating officer BC Satish in a letter to the chief secretary said several milk societies in Karnataka are struggling due to non-payment of dues.

Satish said KMF has also decided to increase the price by Rs 5 per litre with immediate effect. He said KMF agreed to supply milk to AP at a discount of Rs 5 per litre keeping in mind that supplies were intended for women and children at anganwadi centres. The AP government signed an MoU with KMF for supply of milk to anganwadi centres in June 2020 under Sampoorna Poshan scheme. AP procures nearly 110 lakh litres per month from KMF.

Satish added they are unable to supply milk at the old rates due to increase in petrol and diesel prices, which has resulted in a huge burden on the federation in the form of transportation charges. The KMF MD said they had communicated their decision to cancel the Rs 5 per litre discount in February. Satish pointed out that many of the societies are struggling with losses due to increased input costs and fuel charges.

Responding to the issue, women development and child welfare minister Taneti Vanitha said the issue will be resolved shortly. “We will take the issue to the notice of the chief minister and ensure that supplies are continued without any trouble,” Vanitha told TOI.