Karnataka Defends Rs 8 Milk Price Hike, Says Rs 7 Will Go to Farmers

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Bengaluru: The Karnataka government has defended its decision to increase milk prices by Rs 8 per litre from November 1, saying Rs 7 of the additional amount will be passed on directly to dairy farmers.

In a statement, the Chief Minister’s Office (CMO) said the price revision was necessary to protect farmers’ incomes amid rising input costs and declining milk procurement due to drought conditions.

The government cited higher prices of cattle feed and fodder, increased fuel and packaging costs, and a fall in daily milk procurement as key reasons for the hike.

The Rs 8 increase will raise the procurement price paid to farmers from Rs 35 to Rs 42 per litre. With the existing government incentive of Rs 5 per litre, farmers will receive a total of Rs 47 per litre, the CMO said.

A farmer supplying 10 litres of milk daily is expected to earn an additional Rs 2,100 a month. The revision is projected to generate an additional annual income of Rs 1,850 crore to Rs 2,100 crore for dairy-farming families across the state.

Karnataka has 28.84 lakh dairy farmers, with small and marginal farmers accounting for 67% of Karnataka Milk Federation (KMF) members, the statement said.

The government said Nandini toned milk would cost Rs 54 per litre after the revision, while Nandini Shubham milk, which contains 4.5% fat, would be priced at Rs 60 per litre.

The CMO said the average price of comparable milk across 10 other states was Rs 62.80 per litre, making Nandini Shubham relatively cheaper.

The government reiterated that the price revision was intended to ensure better returns for dairy farmers while maintaining an affordable supply of quality milk for consumers.