Karnataka residents may soon have to shell out more for their daily cups of tea and coffee as the state government is planning to increase Nandini milk prices. The move has come under strong opposition from the hotel industry, with Bengaluru Hotels Association warning that hotels may be forced to revise prices of beverages, snacks and other food items.
The Karnataka Cabinet on October 29 approved an increase of ₹8 per litre in Nandini milk prices, and the new rates would come into effect from November 1, 2026. Hotel owners said this would put further pressure on their businesses and eventually customers too.
“An increase of just ₹2–₹3 per litre would have been manageable without hotels having to raise prices of tea, coffee and snacks, but now that the government has approved an ₹8 increase, then revising menu prices is very difficult,” said a hotel association official.
Hotel Association Opposes ₹8 Milk Price Hike
The Bengaluru Hotels Association has opposed the government’s decision to increase milk prices by ₹8 per litre. In a statement issued on October 29, it said a steep rise in prices would hit hotel operators as well as ordinary consumers.
The association said milk is part of several drinks and foods commonly consumed by people. Hotels use large amounts of milk to make tea, coffee, and other products throughout the day.
It also said that rice and other essential commodities prices have already increased operational costs for hotels. Another high cost from the milk price revision could make it difficult for establishments to keep their menu prices the same.
The association has asked the state government to reconsider the decision and reduce the increase to ₹2–₹3 per litre.
Tea and Coffee Prices May Increase by ₹2–₹3
One of the first concerns for customers is that tea and coffee prices in hotels and restaurants will go up.
Hotel owners are also looking at increasing prices for drinks to cover the extra cost of milk. ₹2–₹3 per cup is one option being discussed.
However, there is no statewide price revision announced by the association. That decision will be made by individual hotel owners based on their operating expenses.
Apart from tea and coffee, other milk-based beverages and food items could also become more expensive. Customers may therefore see changes in menu prices at different hotels and darshinis.
The association says individual businesses will decide on price changes based on their financial needs rather than having a state-wide rate increase.
Why Are Hotel Owners Demanding a Smaller Milk Price Increase?
Hotel representatives say the ₹8 increase proposed is much higher than businesses could stomach.
“Had the increase been limited to ₹2–₹3 per litre, hotels would have borne less financial burden, and customers wouldn’t have had to pay more,” the association said.
Hotel operators are also worried about regular customers — seniors, students, working professionals and families who often rely on affordable hotel food and beverages.
The association has also requested the government to control administrative expenditure in the dairy sector and give incentives to farmers so that milk prices can remain affordable.
Nandini Milk Price to Increase From November 1
Karnataka Cabinet has approved an increase of ₹8 per litre in Nandini milk prices from November 1, 2026.
Under the revised scheme, ₹7 out of the additional amount would be used for increasing payments to dairy farmers, and ₹1 will go to milk unions for operational and maintenance expenses.
The price of basic toned milk in blue packet will go up from ₹46 to ₹54 per litre.
The government has defended the move by saying farmers wanted it, dairy production expenses were rising, and milk producers needed support.
Customers May Feel the Impact Beyond Milk Prices
The milk price hike could have a wider impact on everyday spending in Karnataka too. If hotels revise menu prices, then customers will have to pay more not only for milk but also for commonly consumed beverages and breakfast items.
For now, the exact increase in tea, coffee and food prices will differ from one shop to another. Customers are waiting to see how individual hotel owners react to the revised milk rates from Nov 1.
Milk, rice and other essential commodities are getting more expensive now — so the hike in hotel prices proposed by the government could add another burden on household budgets across Karnataka.
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