States » SouthPosted at: Oct 31 2026 2:15PM


CM Shivakumar defends milk price hike

Bengaluru, Oct 31 (UNI) Defending Karnataka's decision to increase milk and curd prices amid mounting criticism from consumers and opposition parties, Chief Minister DK Shivakumar on Saturday said the revision would channel an additional Rs 1,850 crore to Rs 2,100 crore annually into the rural dairy economy, benefiting 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. The price of Nandini toned milk will rise from Rs 46 to Rs 54 per litre.
Shivakumar said the increase was necessitated by rising cattle feed and fodder prices, higher fuel and packaging costs, and a significant decline in milk procurement due to drought conditions.
Of the Rs 8 increase in milk prices, Rs 7 would go directly to farmers, raising the procurement price from Rs 35 to Rs 42 per litre. The remaining Re 1 would go to milk cooperative unions to meet increased operational expenses, including transportation, fuel and packaging.
With the existing state government incentive of Rs 5 per litre, farmers would receive Rs 47 per litre, he said.
The impact of drought on the dairy sector has been substantial, with daily milk procurement by cooperatives declining by nearly 10 lakh litres over the past four to five months, according to figures cited by the government. Around 228 taluks have been affected by drought conditions, adding to the pressure on agricultural and dairy households.
The Chief Minister said a farmer supplying 10 litres of milk daily would earn an additional Rs 2,100 a month following the revision. Nearly 67 per cent of KMF-affiliated dairy farmers are small and marginal farmers, making the enhanced procurement price significant for rural livelihoods.
The decision follows sustained demands from dairy farmers and milk cooperative unions, who had initially sought an increase of Rs 10 per litre. Farmers had also staged protests seeking better procurement prices in view of escalating production and transportation costs. The Cabinet eventually approved an Rs 8 increase after discussions, with the government maintaining that the lower revision was intended to limit the burden on consumers.
Cooperation Minister Laxman Savadi had also cautioned that without a procurement price revision, farmers could divert milk supplies to neighbouring states offering better returns, potentially creating shortages within Karnataka.
Seeking to justify the revised retail prices, Shivakumar said Nandini products would continue to remain cheaper than several competing brands in other states.
Nandini toned milk would cost Rs 54 per litre, while Nandini Shubham milk would be priced at Rs 60. He cited an average price of Rs 62.80 for comparable milk in 10 other states.
Government figures cited during the Cabinet briefing showed that 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 revision also comes amid a series of earlier price increases. The latest hike is the fifth revision in Nandini milk prices since November 2022, following increases in November 2022, July 2023, June 2024 and March 2025.
The government has indicated that prices of other dairy products, including ghee, butter and cheese, could also see upward revisions in view of increased input and operational costs.
The price increase has triggered criticism from opposition parties and consumers, who have questioned the additional burden on household budgets.
Shivakumar maintained that the government was committed to protecting dairy farmers' livelihoods while ensuring that consumers continued to receive quality Nandini products at competitive prices.
The revised rates will come into force across Karnataka from Sunday.
UNI BDN
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