Karnataka government gears up to hike milk prices amid rising production costs. Details

Karnataka's Animal Husbandry Minister announced a milk price increase due to farmers' demands. A potential rise of ₹5 per litre is under discussion.

Karnataka's Animal Husbandry Minister, K Venkatesh, announced on Wednesday that milk prices in the state will be increased in response to growing demands from dairy farmers. However, the final decision on the extent of the increase will be taken after discussions with Chief Minister Siddaramaiah.

Karnataka to see milk price rise after government's approval. (PTI)

Speaking in the Legislative Council, Venkatesh emphasized that farmers are facing mounting production expenses, making their demand for a price revision justified. "We are taking into account both farmers' concerns and consumer interests before implementing the new pricing," he added. As per certain reports, the proposed price hike may lead to an increase of ₹5 per litre for consumers, raising the cost of one litre of Nandini milk from ₹44 to ₹47. However, the state government has not yet officially confirmed the final increase.

This is not the first instance of milk price revision in Karnataka. In June 2024, the Karnataka Co-operative Milk Producer's Federation (KMF) raised the price of Nandini milk by ₹2 per litre. Previously, in July 2023, the state government permitted KMF to increase rates by ₹3 per litre, even though the federation had initially sought a hike of ₹5 per litre. At the time, Chief Minister Siddaramaiah defended the price adjustment, stating that Karnataka’s milk prices remained lower than those in several other states.

All milk products price likely to go up

An increase in milk prices will have a cascading effect on various dairy products, including ghee, butter, paneer, and ice cream, which are commonly used in households. The Bengaluru Hotel Association has also decided to raise the prices of filter coffee, following a recent surge in coffee powder costs. Presently, a cup of filter coffee is priced between ₹12 and ₹15, depending on the serving size. With the new pricing structure, it is expected to cost between ₹15 and ₹20. Some eateries have already started implementing the revised rates.

While the government has yet to finalize the new milk price, consumers should prepare for an imminent increase that could impact their daily expenses.