Karnataka Chief Minister D.K. Shivakumar defended the state government’s decision to increase the price of Nandini milk by ₹8 per litre, saying that it is being done to protect dairy farmers from financial loss and for their economic stability.
Shivakumar was asked questions by reporters and said opposition to the price rise in milk is surprising, as people are ready to spend ₹30-₹35 on a litre of packaged drinking water, but when milk prices go up, they object to it. He added that farmers are essential for the dairy industry and the government has to protect them, and price revision was made after taking into account production and transportation cost rise and financial difficulties faced by milk producers.
Shivakumar said there were demands to increase the price of milk from ₹12 to ₹15 per litre, but the government decided on an increase of ₹8 per litre. Farmers must get financial returns for their work and investment, he said. “If there are farmers, we will have milk to drink. If there are no farmers, how will we get milk?” he asked.
Dairy farming has to be sustained so that farmers don’t have to lose money supplying an essential product consumed by millions of households every day, he said. The government feels the revised pricing would give better financial support to milk producers and strengthen the state dairy sector.
The Chief Minister also cited the rising cost of materials and services used in milk production and distribution. “Plastic packaging, diesel and petrol expenses have gone up considerably; transportation costs are also high (milk has to be transported from collection centres to processing units and distribution points).
These factors have put pressure on dairy cooperatives,” he said. Shivakumar added that Karnataka’s milk prices were comparatively low when compared with Andhra Pradesh in the neighbouring state, but because of lower prices in Karnataka, Nandini milk was reportedly being transported and sold in neighbouring states like Andhra Pradesh and Maharashtra. The government had to tackle this situation so that benefits of milk production remained with local farmers and consumers, he said.
Shivakumar also talked about the demand for Nandini ghee and other dairy products outside Karnataka. Tirumala Tirupati Devasthanams (TTD) buys Nandini ghee for its requirements, he said. “TTD could have sourced ghee locally but continued to buy Nandini products because it had faith in their quality.”
Nandini ghee is also used to prepare traditional sweets like Mysore Pak and other popular delicacies. Demand for Nandini products increases when the brand name is known beyond Karnataka, said the Chief Minister, adding that farmers should be supported by appropriate milk pricing so that quality and availability of these products are sustained in the long run.
The Chief Minister also said that the decision to increase milk prices was supported by all parties. Members of the Karnataka Legislative Assembly and Legislative Council had raised this issue and demanded that milk prices be increased so that dairy farmers could be supported, but as the government could not take a final decision earlier because of the election for the Legislative Council, it waited till now, when elections were over. Now the price revision has been made, he claimed. He said it was not just a political decision but in response to the concerns of farmers and elected representatives from various parties.
The milk price hike will impact household budgets (especially families who buy Nandini milk) and tea shops, coffee outlets, hotels, restaurants, etc food businesses too, because milk is an ingredient in many everyday products. Any additional cost would eventually be passed on to tea, coffee and other dairy-based food items.
The government has defended the decision as necessary for farmers, but consumers and business owners will watch closely how it plays out. Shivakumar said farmers are still a priority of the government, and the financial security of farmers is important so that milk supply remains stable and Karnataka’s dairy industry is protected.
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