Belagavi milk co-operative society union (BEMUL) plans to launch a pilot project on bio gas generation using cow dung and farm waste.

As many as 150 of the 669 societies will be selected for the pilot project. Farmers will be encouraged to start biogas units. Once they are established, the initiative will be expanded to all the societies, BEMUL Chairperson Balachandra Jarkiholi said in Belagavi on July 20.

He said the initiative is aimed at resolving multiple issues, including waste management in rural areas and making farmers self-reliant in power generation.

Addressing the general body meeting of the union, he alleged that some vested interests in the Bengaluru milk union were trying to stop efforts by the Belagavi union to supply milk and milk products to the Andhra Pradesh market.

Push for buffalo milk

He urged farmers to increase their contribution of buffalo milk to Karnataka Milk Federation (KMF).

"It is a matter of great concern that farmers produce significant amount of buffalo milk, but sell it to private dairies, and give only cow milk to KMF. Increased supply of buffalo milk to KMF will help us make better profits. I don't understand why farmers supply buffalo milk to private dairies, but seek benefits from the KMF. I am ready to fulfil all your legitimate demands if you promise to give at least 50% of your buffalo milk production to the KMF,” he said.

“We are diverting our profit to support farmers instead of paying tax on our earnings. We are offering cash incentives, loans on easy terms, subsidy on equipment like weed mats, milking machines, quality testing and packaging machines. We will increase the number of beneficiaries and the range of benefits if we get more buffalo milk. Only around 215 societies are supplying buffalo milk to KMF. Officers and local leaders should aim at increasing the contribution,” he said.

He said that the union had made a profit for the second consecutive year. “We earned a profit of ₹13 crore in 2025, and ₹12.59 crore this year.”

He said that plans for a group insurance scheme were abandoned after companies refused to provide coverage to farmers above the age of 70.

Instead, a new scheme has been implemented to provide assistance of ₹60,000 upon the death of members, who supply milk, from the Farmers’ Welfare Fund and ₹25,000 to the family of members who do not supply milk, he informed.

Many important schemes for the development of Bemul were announced in the meeting. Crores of rupees have been allocated for various projects in the years 2026-27 and 2027-28, including distribution of 30,000 rubber mats, 400 fodder cutting machines, 100 milking machines, installation of 15 new bulk milk coolers, construction of 150 biogas units, distribution of DCS equipment to 100 new milk producer associations, and ₹5 lakh grant each to 40 associations that have constructed new buildings.

Steps are being taken to purchase 25 acres of land, currently on lease from the government of Karnataka, to build a state-of-the-art dairy. He said that the new dairy will reduce production costs and provide more benefits to farmers.

In the last two years, the purchase price of cow milk has been increased from ₹29.10 to ₹34 and the price of buffalo milk from ₹41.60 to ₹50. The bill payment system for farmers will continue every ten days, and there is no question of reducing the price, he clarified.
In 2025-26, Bemul's business turnover increased to ₹515.15 crore, earning a net profit of ₹2.64 crore. Several schemes have been approved, including ₹13 crore for providing various facilities to milk producers' associations and members, ₹2.50 crore for marketing development and ₹4.50 crore for infrastructure development. Along with sugarcane, dairy farming should also be the economic base of farmers. Farmers' cooperation is important for Bemul to grow further,he said.
Managing Director Srikanth V.N said that milk production incentive of ₹5 per litre had already been given to farmers till March. "Release of the next installment is pending from the government,” he said.

In 2025-26, Bemul's business turnover increased to ₹515.15 crore, earning a net profit of ₹2.64 crore. Several schemes have been approved, including ₹13 crore for providing various facilities to milk producers' associations and members, ₹2.50 crore for marketing development, and ₹4.50 crore for infrastructure development. Along with sugarcane, dairy farming should be the economic base of farmers. “Farmers' cooperation is important for Bemul to grow further,” he said.

Managing Director Srikanth V.N said that milk production incentive of ₹5 per litre had already been given to farmers till March. "Release of the next installment is pending from the government,” he said.

Apex Bank Director Rahul Satish Jarkiholi, Bemul Directors Babu Katti, Mallappa Patil, Kallappa Girennavara, Dr. Basavaraja Paravannavara, Baburao Waghmode, Virupakshi Etee, Rayappa Dooga, Prakash Amboji, Mahadeva Bilikuri, Sanjay Shintri, Ramesh Annigeri, Sadeppa Wari, Shankar Itnal, Savita Khanappagol, nominated member Vasantha Karigara, and professional directors Ajith Desai and Basavaraja Maledavar were among those who participated in the meeting.

Published - July 21, 2026 01:20 pm IST