Karnataka raises Nandini milk price by Rs 8 a litre from November 1, Rs 7 to go to farmers

Milk will cost more across Karnataka from Sunday. The state Cabinet on Thursday approved an increase of Rs 8 per litre in the price of Nandini milk, sold by the Karnataka Milk Federation (KMF), with effect from November 1.

Basic toned milk in the blue packet will go up from Rs 46 to Rs 54 a litre, according to reports of the decision. Of the Rs 8 increase, Rs 7 will be passed on to dairy farmers and Re 1 will go to the milk cooperatives.

Why the government raised prices

Chief Minister D K Shivakumar said the hike was meant to protect farmers from losses, pointing to higher costs of production and transport, including diesel and plastic packaging. He said demands from the sector had ranged from Rs 12 to Rs 15 a litre, and that the decision had been held up by the Model Code of Conduct during the recent Legislative Council elections.

Ministers also said that because Karnataka's milk is cheaper than in neighbouring states, milk was being diverted to Andhra Pradesh and Maharashtra. Cooperatives have reported a fall of about 10 lakh litres a day in procurement over recent months amid drought and fodder shortages.

With the increase, the price paid to farmers will rise from Rs 35 to Rs 42 per litre, and with the existing state incentive of Rs 5, farmers will receive about Rs 47 a litre, Business Today reported. Farmer groups had pressed for at least Rs 10.

What it means for households

For a family that buys two litres a day, the increase works out to about Rs 16 more daily, or close to Rs 480 a month. Cooperation Minister Laxman Savadi indicated that prices of curd, buttermilk, butter and ghee are also likely to be revised, though new rates for these products were not announced on Thursday.

The government said Nandini will remain cheaper than major rival brands sold in other states even after the revision. This is the fifth increase in Nandini prices since November 2022.

Shivakumar also hinted that state bus fares may be revised in the coming days, citing heavy losses at the transport corporations. No decision on fares has been announced.