Bengaluru, Karnataka – Starting November 1, consumers in Karnataka will pay Rs 8 more per litre for Nandini milk. The state Cabinet officially approved the price increase, raising the retail cost from Rs 46 to Rs 54 per litre. This decision follows persistent demands from dairy farmers for higher procurement prices, citing escalating operational costs and a noticeable drop in milk production.
State Minister Krishna Byre Gowda confirmed that Rs 7 of the Rs 8 increase will be directly passed on to milk-producing farmers. The remaining Re 1 will be allocated to dairy cooperatives operating under the Karnataka Milk Federation (KMF), the entity responsible for marketing the popular Nandini brand. This structure is designed to provide immediate relief and financial stability to the state's farming community.
Supporting Farmers Amidst Challenges
The hike will see the procurement price paid to farmers rise from Rs 35 to Rs 42 per litre. Coupled with an existing government incentive of Rs 5 per litre, farmers will now receive a total of Rs 47 per litre for their produce. This move is expected to benefit lakhs of farming families across Karnataka, many of whom have been struggling with drought conditions that have intensified over the past four to five months, leading to an approximate 10 lakh litre daily drop in milk procurement by cooperatives.
Cooperative Minister Laxman Savadi emphasized the necessity of the price revision to protect farmers and prevent milk supplies from being diverted to neighboring states where prices are higher. Without the increase, Karnataka faced the dual threat of farmer distress and potential milk scarcity within the state.
Broader Impact on Dairy Products and Market Competitiveness
The ripple effect of the milk price hike is expected to extend to other Nandini dairy products. Savadi indicated that prices for butter, ghee, curd, and buttermilk are also likely to increase in the wake of this revision. Cooperatives had initially sought an additional Rs 3 per litre to cover rising fuel, packaging, and transportation expenses, but the government approved Re 1 after reviewing their cost structures.
Defending the decision, Minister Gowda asserted that even after the Rs 8 increase, Nandini milk remains competitively priced compared to several other leading brands across India. He cited examples such as Mother Dairy milk priced at Rs 60 per litre in Delhi, Amul at Rs 59 in Maharashtra, and Vijaya at Rs 64 in Telangana, highlighting Nandini's continued affordability relative to the national market.