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Milk prices may rise by ₹5/litre after budget is tabled on March 7
Milk prices in Karnataka are expected to rise by ₹5 per litre following the state budget on March 7, with the Karnataka Milk Federation (KMF) awaiting final approval from the government
Milk prices in Karnataka are expected to rise by ₹5 per litre following the state budget on March 7, with the Karnataka Milk Federation (KMF) awaiting final approval from the government, an official familiar with the matter said. The price revision will also see a reduction in milk packet quantity from 1,050 ml to one litre, undoing an earlier increase introduced last year.
If implemented, the price of Nandini toned milk will rise from ₹44 to ₹ 47 per litre, marking the steepest hike in three years. This adjustment follows previous price increases by KMF — ₹3 per litre in 2022 and ₹2 per litre in 2024 — when the federation had countered the impact by adding an extra 50 ml per litre. The latest move eliminated that additional quantity while raising the price, effectively increasing the cost for consumers.
The proposal has drawn criticism from opposition leaders, with Leader of Opposition in the Karnataka Legislative Council Chalavadi Narayanaswamy blaming the government for fiscal mismanagement. “For this government, there are no other options left except for raising prices because they don’t know how to manage the budget,” he said. He further accused the administration of failing to deliver development and burdening citizens with repeated price hikes.
Narayanaswamy also questioned whether dairy farmers would benefit from the increase, stating, “Their manifesto states that they will give ₹5 to farmers, but will they actually provide it, or put it in their pocket?”
Justifying the hike, KMF managing director B Shivaswamy cited a drop in milk procurement. “Earlier, we were procuring 85-89 lakh litres a day. It had also gone up to 99 lakh litres a day and more. Now, we are getting 79-81 lakh litres a day, so the additional milk supplied to consumers will stop,” he said. Shivaswamy also pointed out that even with the revised price, Nandini milk would remain cheaper than several other brands in Karnataka and across states.
The hike in milk prices comes as Karnataka residents grapple with rising costs across essential goods and services. Coffee powder prices are set to increase by ₹200 per kg by March, while public transport fares for BMTC buses and Namma Metro have already gone up. Additionally, the state government is considering raising water tariffs, and electricity supply companies (Escoms) have sought approval for a 67 paise per unit increase in power tariffs.
