Karnataka hikes Nandini milk prices by Rs 8 to Rs 54 per litre; Rs 7 to go to farmers

The Karnataka Cabinet on Thursday approved a Rs 8 per litre hike in Nandini milk prices, with the revised rates coming into effect from November 1. Of the total increase, Rs 7 will go to dairy farmers and Re 1 to milk cooperatives, Minister Krishna Byre Gowda said after the Cabinet meeting.

The price of basic toned milk, currently sold at Rs 46 per litre, will rise to Rs 54.

Explaining the decision, Gowda said farmers had been facing a crisis, prompting members of all parties in the Legislative Council to call for measures to support them.

Milk producers had also staged protests, while cooperatives had pressed for a price revision.

"Respecting these demands, the Cabinet has today decided to increase the price paid to milk-producing farmers by Rs 7 per litre. In addition, the cooperatives will receive an increase of Re 1 per litre. Thus, the total increase will be Rs 8 per litre," news agency PTI quoted the minister as saying.

He added that the proposal had been discussed at two or three Cabinet meetings and that the decision was taken unanimously.

Farmers and cooperative representatives had initially demanded an increase of at least Rs 10 per litre during meetings with the Chief Minister and ministers concerned with animal husbandry and cooperation.

"Although farmers demanded an increase of Rs 10 per litre, it was felt that so much increase cannot be done," Gowda said, explaining that the Cabinet settled on a Rs 8 hike after deliberations.

Under the revised arrangement, the price paid to farmers will increase from Rs 35 to Rs 42 per litre. The existing state government incentive of Rs 5 per litre will continue, taking the total amount received by farmers to Rs 47 per litre, including the incentive. Gowda said the move would benefit lakhs of farming families.

The Cabinet had approved the proposal on October 6, but its announcement was delayed because the Model Code of Conduct was in force for Legislative Council elections.BENGALURU HOTELS BODY OPPOSES HIKE

Meanwhile, the Bengaluru Hotels Association has opposed the price hike, urging authorities to restrict the increase to Rs 2–Rs 3 per litre.

The association warned that the steep hike would raise operating costs for hotels and restaurants, which rely heavily on milk for preparing beverages and food items.

Higher milk prices could force establishments to increase rates for tea, coffee, snacks and other milk-based products, adding to the financial burden on consumers.

The association has urged the government to reconsider the proposed hike and provide relief to the hospitality industry while supporting dairy farmers.FIRST HIKE SINCE APRIL 2025

The latest revision follows the April 2025 increase, when Nandini milk and curd prices were raised by Rs 4 per litre or kilogram.

Toned milk rose from Rs 42 to Rs 46 per litre at the time. Milk unions had cited rising costs of cattle feed, fodder, medicines, transportation and packaging, along with fodder shortages caused by drought.

With the new rates scheduled to take effect on November 1, consumers will bear the brunt of the higher milk prices, while the government expects the bulk of the additional revenue to provide greater financial support to dairy farmers.- EndsWith PTI inputs

Nagarjun Dwarakanath covers Politics extensively in Karnataka and across Southern India. A commercial Pilot by qualification, Nagarjun covers Aviation beat for India today