Bhubaneswar, July 30: The price of milk supplied by the Odisha State Cooperative Milk Producers’ Federation Limited (Omfed) is set to go up by Rs 4 to Rs 6 a litre across the state.

Omfed has given a proposal to this effect to the state government.

“We are examining the proposal,” said a senior government official.

“We are awaiting the decision,” said Omfed managing director Saswat Mishra, who took charge today.

Sources said the federation took a decision to hike milk prices following a growing demand from the milk producers affiliated to it. They were finding the present rates unviable.

Omfed is the major player in the distribution of milk and controls nearly 40 per cent of market share in the state. It sells nearly 4.2 lakh litres of milk everyday. The other players in the market are also waiting for the government’s decision on the increase in the price of milk supplied by Omfed.

“Once the Omfed hikes the price of milk, we will certainly follow,” said Ramesh Behera, who has been in the milk business for the past 40 years.

At present, milk is available in the market at Rs 24 a litre. If the Omfed proposal is accepted, the price would go up to at least Rs 28 a litre.

“Whatever may be the hike, the benefit will directly go to the farmers,” said an Omfed official, adding that the organisation was not eyeing a cut.

At present, Omfed procures milk from farmers at prices ranging between Rs 16.75 and Rs 22 a litre. The price of milk is decided mostly by its quality.

“The farmers are not willing to supply milk at the prevailing prices because the input cost, including cattle food, has gone up during the past six months,” said an official of the federation.

The Omfed marketing staff have informally asked Omfed stall owners to be ready to charge more from the consumers. “The decision on the price rise will be taken once the ministry’s expansion takes place, which would happen before the August 15,” said a state government official.

Consumers have reacted sharply to the milk price hike proposal. “If the price of milk goes up, it will affect our domestic budget,” said Jita Das, a homemaker, who stays at Nayapalli in Bhubaneswar.

Tea-shop owners have also said that such a hike would force them to charge more from their customers. “Once the price of milk rises, it will not be possible for us to serve a cup of tea at Rs 4 to customers,” said Mitu Behera, who owns a tea kiosk at Unit-I.

The price of sweets would also go up if milk becomes costlier. Last October Omfed had raised the price of milk by Rs 2 per litre.