Bemul reports US$1.3M profit in FY 2025

INDIA – The Belagavi District Co-operative Milk Producers Societies Union (Bemul) has recorded a profit of over US$1.3 million (₹12.5 crore) in the current financial year, highlighting the continued strength of Karnataka’s cooperative dairy sector.

For the financial year 2025-26, Bemul reported a Business turnover of US$53.6 million (₹515.1 crore) and Net profit of US$270,000 (₹2.6 crore).

The union has also approved several investments, including: US$1.35 million (₹13 crore) for farmer welfare and society facilities, US$260,000 (₹2.5 crore) for sales and market development and $467,000 (₹4.5 crore) for infrastructure creation

Speaking at the union’s annual general meeting, former Karnataka Milk Federation (KMF) President Balachandra Jarkiholi announced that approximately ₹13 crore has been earmarked for farmer welfare initiatives, reinforcing Bemul’s commitment to supporting milk producers across the region.

According to Jarkiholi, the cooperative intends to channel these earnings back into farmer welfare and infrastructure development rather than allowing resources to be absorbed through taxation and administrative costs.

Despite overall growth, Bemul expressed concerns regarding declining buffalo milk procurement. Of the 669 affiliated milk producer societies, around 215 societies reportedly did not supply any buffalo milk to the cooperative during the year.

A significant share of buffalo milk is increasingly being sold to private players, impacting Bemul’s ability to expand production of high-value dairy products such as: Curd, Ghee and Other value-added dairy products

The cooperative has urged farmers to channel at least 50% of their buffalo milk production through Bemul to strengthen its value-added dairy portfolio.

New Welfare Measures for Dairy Farmers

Bemul announced a new support initiative for elderly dairy members after insurance providers reportedly declined coverage for members above the age of 70.

Under the new welfare scheme: Families of deceased milk-supplying members will receive US$623 (₹60,000), and Families of non-supplying members will receive US$260 (₹25,000).

The initiative will be financed through the Farmers Welfare Fund, further reinforcing the cooperative’s farmer-centric approach.

Mega Dairy Project in the Pipeline

One of the major announcements during the meeting was the proposal to establish a mega dairy processing facility in Belagavi. Efforts are currently underway to acquire approximately 25 acres of government land for the project.

The proposed mega dairy is expected to: Reduce production costs, increase processing efficiencies, enhance value-added dairy manufacturing, improve returns for member farmers and strengthen Bemul’s long-term competitiveness.

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