Karnataka Government Hikes Nandini Milk Prices by Rs 8 Per Litre
Bengaluru: The Karnataka government has announced a significant upward revision in the price of Nandini milk, with the cost per litre set to increase by Rs 8 effective November 1. Deputy Chief Minister DK Shivakumar defended the hike on Thursday, framing the decision as a necessary measure to insulate dairy farmers from financial distress and ensure the sustainability of the state’s rural economy.
Under the new pricing structure, the Karnataka Milk Federation (KMF) will allocate Rs 7 of the increase directly to farmers, while the remaining Re 1 will be directed toward cooperatives to manage operational costs.
Prioritizing Farmer Welfare
Addressing the media, Shivakumar emphasized that the decision followed extensive consultations with stakeholders. He noted that the rising costs of essential inputs—including diesel, petrol, and packaging materials—had made the existing price point unsustainable for those in the dairy sector.
“The demand for a revision has been pending for several years,” Shivakumar explained. “Our priority is to protect our farmers. If our farmers are not supported, the very foundation of the dairy industry collapses. We have to ask ourselves: if farmers don’t survive, will we have milk to consume?”
The Deputy Chief Minister revealed that the government had faced pressure to increase prices by as much as Rs 12 to Rs 15. However, after balancing the needs of the agricultural community with consumer concerns, the administration settled on the Rs 8 hike. He also noted that legislative members from across the political spectrum had been advocating for this change, though the formal decision was deferred until the completion of recent MLC elections.
Addressing Regional Market Dynamics
A key justification provided for the hike was the need to align Karnataka’s milk pricing with that of neighboring states. Shivakumar pointed out that historically lower prices in Karnataka led to the unauthorized diversion of milk to markets in Maharashtra and Andhra Pradesh. By narrowing this price gap, the government intends to stabilize the local supply chain.
The brand’s reputation was also highlighted, with the Deputy Chief Minister noting that Nandini products, particularly ghee, continue to see immense demand outside the state, including high-profile procurement by the Tirupati temple authorities. This brand loyalty, he argued, justifies investing more heavily in the farmers who make such quality possible.
Potential Hike in Transport Fares
Beyond the milk price adjustment, the government has signaled that residents may soon face a rise in state transport bus fares. Shivakumar acknowledged that the state’s transport corporations are grappling with acute financial instability, exacerbated by the policy of providing free bus travel for women.
“The Transport Department is under severe strain and is currently struggling even to meet fuel costs,” Shivakumar admitted. He indicated that the government has authorized the department to review its financial health and independently determine whether a fare hike is necessary to maintain operations. Whether this will lead to an immediate change in ticket prices remains to be seen in the coming weeks.
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