Karnataka milk price hike puts Congress government on the defensive

Bengaluru, Oct 30 : The Congress government in Karnataka is facing mounting political and public criticism over its decision to increase Nandini milk prices by Rs 8 per litre, with consumer groups and the hotel industry opposing the move, while the government maintains that the hike is necessary to safeguard dairy farmers' interests.

The revised prices, which will come into effect from November 1, will raise the cost of milk from Rs 46 to Rs 54 per litre, placing an additional burden on household budgets and potentially increasing operating costs for the hospitality sector.

The Bangalore Hotels' Association has opposed the steep revision and urged the government to limit the increase to Rs 2-Rs 3 per litre. Its honorary president, PC Rao, said individual hotel establishments would decide on revising menu prices based on the additional operating costs.

The Bengaluru Nandini Milk Consumers' Forum has also condemned the decision and demanded its withdrawal, warning that the increase would disproportionately affect low- and middle-income families.

The BJP has seized on the issue to attack the Congress government, accusing it of transferring the financial burden of supporting farmers to ordinary consumers. Leader of Opposition R Ashoka alleged that the government had failed to fulfil its electoral promises and was making people bear the cost of its financial decisions.

Defending the Cabinet decision, Chief Minister DK Shivakumar said the price revision was unavoidable in view of rising costs of cattle feed, fodder, transportation, fuel and packaging, which had adversely affected dairy farmers.

The government has maintained that Rs 7 of the Rs 8 increase will directly benefit milk producers, while the remaining Re 1 will be allocated to milk cooperative societies to meet operational expenses.

With the revision, the procurement price paid to farmers will increase from Rs 35 to Rs 42 per litre. Including the existing government incentive of Rs 5, farmers will receive a total of Rs 47 per litre.

Shivakumar said dairy farmers had been demanding a revision in procurement prices for the past two years. The government has also cited drought conditions and a decline of nearly 10 lakh litres in daily milk procurement as reasons necessitating the decision.

It has further argued that even after the revision, milk prices in Karnataka would remain lower than those in several other states.

However, the growing consumer opposition has brought into focus the challenge of balancing farmers' welfare with consumer affordability. The debate has also raised questions over whether the financial burden of supporting agricultural producers should be met through higher retail prices or a combination of government assistance and improved efficiencies in the cooperative sector.

With the revised rates set to take effect from November 1, the Nandini milk price hike has emerged as another politically sensitive issue for the Congress government, bringing farmer welfare, consumer interests and inflationary pressures into sharp focus.

Tighten the news copyUse a more neutral headlineReduce repeated price details