Karnataka milk price hike to benefit 28.84 lakh dairy farmers: Shivakumar

Bengaluru, Oct 31 : Karnataka Chief Minister DK Shivakumar on Saturday defended the state government's decision to increase milk and curd prices, stating that the revision would generate an additional Rs 1,850 crore to Rs 2,100 crore annually for the rural dairy economy and benefit nearly 28.84 lakh milk-producing farmers.

The revised prices will come into effect from November 1, with milk becoming costlier by Rs 8 per litre and curd by Rs 14 per litre. Accordingly, the price of Nandini toned milk will increase from Rs 46 to Rs 54 per litre.

Explaining the reasons behind the hike, Shivakumar said rising cattle feed and fodder prices, higher fuel and packaging costs, and a significant decline in milk procurement due to drought conditions had necessitated the revision.

Of the Rs 8 increase in milk prices, Rs 7 will go directly to farmers, raising the milk procurement price from Rs 35 to Rs 42 per litre. The remaining Re 1 will be allocated to milk cooperative unions to meet additional operational expenses, including transportation, fuel and packaging.

With the existing state government incentive of Rs 5 per litre, dairy farmers will now receive Rs 47 per litre, he said.

Highlighting the impact of drought on the dairy sector, the Chief Minister said daily milk procurement by cooperatives had declined by nearly 10 lakh litres over the past four to five months. Around 228 taluks have been affected by drought, putting additional pressure on agricultural and dairy households.

He said a farmer supplying 10 litres of milk daily would earn an additional Rs 2,100 per month following the price revision. Nearly 67 per cent of dairy farmers affiliated with the Karnataka Milk Federation (KMF) are small and marginal farmers, making the increased procurement price significant for rural livelihoods.

The decision follows sustained demands from dairy farmers and milk cooperative unions, who had initially sought a Rs 10 per litre increase, citing rising production and transportation costs. Following discussions, the Cabinet approved an Rs 8 hike, with the government maintaining that the decision was aimed at balancing farmers' interests with the financial burden on consumers.

Cooperation Minister Laxman Savadi had also warned that farmers might divert milk supplies to neighbouring states offering better prices if procurement rates were not revised, potentially leading to shortages in Karnataka.

Comparing Nandini prices with those in other states, Shivakumar said the cooperative brand would continue to offer milk at competitive rates. Nandini toned milk will cost Rs 54 per litre, while Nandini Shubham milk will be priced at Rs 60.

He cited an average price of Rs 62.80 per litre for comparable milk products across 10 other states. According to government figures, milk costs around Rs 59 per litre in Delhi and Maharashtra, Rs 57 in Gujarat, Rs 56 in Rajasthan and Kerala, and Rs 64 in Telangana. Tamil Nadu was an exception, with cooperative milk priced at around Rs 40 per litre.

The latest revision marks the fifth increase in Nandini milk prices since November 2022. Earlier hikes were implemented in November 2022, July 2023, June 2024 and March 2025.

The government has also indicated that prices of other dairy products, including ghee, butter and cheese, may be revised upwards due to rising input and operational costs.

Meanwhile, the latest price hike has drawn criticism from opposition parties and consumers, who have expressed concern over the additional burden on household budgets.

Defending the decision, Shivakumar maintained that the government was committed to safeguarding dairy farmers' livelihoods while ensuring consumers continued to receive quality Nandini products at competitive prices.

The revised rates will come into effect across Karnataka from Sunday, November 1.