The losses of MILKFED, which is running a couple of chilling plants, have mounted to Rs 26.49 crore, Sharma informed the legislative assembly.
The government has increased the grant-in-aid for the Federation from Rs 12 crore in 2012-13 to Rs 13.50 crore from the next fiscal, he said in a reply to a question.
Due to huge losses incurred by the Federation, its liability towards farmers, supplying milk to the chilling plants, has increased to Rs 4.90 crore, the minister said.
The state government has increased the procurement price of milk from Rs 17.50 to Rs 18.50 per litre in 2013-14 budget to help farmers improve their financial condition, Sharma said.