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Karnataka clears Rs 8 per litre Nandini milk price hike from Nov 1

Bengaluru, Oct 29 (UNI) Karnataka has approved an Rs 8 per litre increase in Nandini milk prices from November 1, raising the procurement price paid to dairy farmers from Rs 35 to Rs 42 per litre, as the state government moves to address mounting pressure from milk producers for better returns.
Revenue Minister Krishna Byre Gowda announced the Cabinet's unanimous decision on Thursday, saying Rs 7 of the increase would go to milk producers and the remaining Re 1 to dairy cooperative societies.
With the existing government incentive of Rs 5 per litre continuing, farmers will receive a total of Rs 47 per litre, he said.
The decision follows protests by milk producers demanding higher procurement prices amid rising production costs. Farmers had initially sought an increase of at least Rs 10 per litre, prompting the government to deliberate on the proposal at multiple Cabinet meetings before approving the revision.
The hike, however, is set to put additional pressure on household budgets and businesses dependent on milk, including tea stalls, hotels, restaurants and bakeries. The extent of the impact will depend on the revised retail prices announced by the Karnataka Milk Federation (KMF) for different varieties of Nandini milk.
The government had considered the proposal earlier this month but deferred a decision due to the Model Code of Conduct in force for Legislative Council elections. The Cabinet has now cleared the increase, with implementation scheduled for November 1.
The revised pricing structure is intended to improve returns to dairy farmers while providing additional revenue to cooperative societies. Of the Rs 8 increase, the bulk has been earmarked for producers, reflecting the government's response to demands for better remuneration in the dairy sector.
The KMF and district milk unions are expected to communicate the revised prices for individual milk varieties ahead of implementation.
The key challenge will be to ensure that higher procurement payments provide meaningful relief to milk producers without significantly affecting consumer demand and the affordability of an essential household commodity.
UNI BDN
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