Milk Price Hike in Karnataka: Consumers to Pay ₹5 More Per Litre Starting Next Month

Milk Price Hike in Karnataka: Come March, Karnataka residents will have to shell out more for essential dairy products as the price of milk is set to increase. Following the state budget presentation on March 7, the cost of a litre of Nandini milk will rise by ₹5. Additionally, the packaging quantity will be adjusted from the existing 1,050 ml to a standard one-litre pack, pushing the price of a litre of Nandini toned milk to ₹47.

This marks the second major milk price hike by the Karnataka Milk Federation (KMF) in three years. In 2022, the price was raised by ₹3 per litre, followed by another increase in 2024, where the cost per packet rose by ₹2, accompanied by a 50ml quantity increase. However, KMF maintained that the previous adjustment was not a price hike but a quantity correction.

The upcoming milk price hike follows a series of cost increases in Karnataka. The coffee brewers' association has announced a ₹200 per kg hike in coffee powder prices by March. Additionally, ticket prices for BMTC buses and Namma Metro have been increased, and the state government is considering raising the water tariff. Electricity supply companies (Escoms) have also approached the Karnataka Electricity Commission, proposing a power tariff hike of 67 paise per unit for the upcoming financial year.

KMF Managing Director B. Shivaswamy stated that the hike is driven by farmers' demands for better compensation. "Farmers have requested a ₹5 per litre increase, and the final decision now rests with the Chief Minister. The new rates will take effect after the state budget," he told The New Indian Express.

KMF is currently procuring 79-81 lakh litres of milk per day, down from the previous 85-99 lakh litres. Due to this decline in supply, the additional quantity previously provided to consumers will be discontinued.

Despite the price hike, KMF officials assert that Nandini milk will remain more affordable than other brands in Karnataka and across India.

Discussions are ongoing regarding how the additional revenue from the price hike will be distributed. While farmers seek the full benefit, the employees' union has raised concerns over financial issues, including 7th Pay Commission wages and pensions. "Ideally, the additional cost should go to farmers, but we need to factor in employee concerns as well," a KMF official said on condition of anonymity.

The final approval for the price revision will be announced post-budget, impacting millions of households in Karnataka.