In Karnataka, Nandini milk prices may come under pressure as milk producers’ cooperative unions want an increase of ₹8 to ₹10 per litre in cattle feed, fodder, veterinary and operating costs. The demand is coming amid drought-related pressure on fodder availability and milk procurement across the state.
More recently, Karnataka milk unions met the Chief Minister D.K. Shivakumar and presented the proposal for a price revision. The Chief Minister has asked officials to examine detailed data on milk production costs, cattle-feed prices, procurement volumes, processing expenses and milk sales before taking a decision. Similarly, milk prices and procurement rates in other states have been sought.
The proposed increase could have an impact beyond the price of packaged milk. If Nandini milk prices are revised, products like curd, butter, ghee, paneer and other dairy-based items may also be charged higher if the change is made.
One of the main arguments put forward by the milk unions is that dairy farmers in Karnataka receive less than those in neighbouring states. According to representatives of the unions, Karnataka presently buys milk from farmers for around ₹35 per litre, compared to around ₹41.50 in Andhra Pradesh, ₹41.80 in Kerala, ₹41 in Maharashtra and ₹42.24 in Tamil Nadu.
The unions say higher input costs are putting increasing financial pressure on dairy farmers. Feed, fodder, veterinary care and other operating expenses have risen, and drought conditions have further affected the availability of cattle fodder.
Milk procurement also declined. The Karnataka Milk Producers Association said KMF’s daily procurement had fallen from around 1.11 crore litres three months ago to around 1.03 crore litres, with fodder shortages also affecting milk quality and milk-solids content.
The price hike proposal has evolved in recent days. Although milk unions had been seeking the increase of ₹8-10 per litre, the demand was finally reduced by the state government to ₹5 per litre on September 26, with milk farmers and consumers being informed. It is expected that the Chief Minister will take the decision.
For consumers, any increase would directly affect recurring household expenses. Milk is a daily-use staple, so even a small increase per litre can be a high extra monthly cost for families that buy milk regularly.
The potential increase also coincides with Karnataka’s broader agricultural and water pressure. Drought and fodder availability have been identified as the main issues in the dairy sector in recent reports.
The government, therefore, has a few competing choices: increasing returns for dairy farmers and strengthening the finances of milk cooperatives, while reducing the impact of a price increase on consumers on the other hand. The proposed revision is still not definitively confirmed, and the government is analyzing the data before making its decision.
