Karnataka Government Hikes Milk Price By ₹4; Additional Revenue To Support Farmers

The Karnataka Cabinet has approved a price hike of Rs 4 per litre for milk across the state. The additional revenue generated from this increase will be directly given to dairy farmers, fulfilling a longstanding demand by farmers, various organizations, and the Department of Animal Husbandry.

The Karnataka Milk Federation (KMF) and several farmers’ organizations have been pushing for a price increase, arguing that rising production costs have made dairy farming unsustainable. Initially, KMF and farmers’ groups had demanded a Rs 5 per litre hike, but after discussions, the government agreed to a Rs 4 increase.

Chief Minister Siddaramaiah had earlier opposed any hike but had assured KMF that a final decision would be taken by the cabinet soon. He had also emphasized that any price revision must ensure that the full additional amount benefits dairy farmers.

The state cabinet’s decision includes increasing the price of the widely consumed Nandini milk, supplied by KMF. On March 5, the Karnataka government had hinted at a possible price hike, considering the financial strain on dairy farmers.

This is not the first time milk prices have been revised in Karnataka. On June 25, 2024, the government had increased the price by Rs 2 while adding an extra 50 ml to each packet, a move that was met with criticism.

On February 10, the Karnataka Rajya Raitha Sangha and the Green Brigade staged protests at the KMF office in Bengaluru. The protestors demanded an increase in milk procurement prices to at least Rs 50 per litre. Additionally, they called for an interim support price of Rs 10 per litre until the implementation of a Minimum Support Price (MSP) for milk.

Impact of the Price Hike

The price revision is expected to provide much-needed financial relief to dairy farmers, who have been struggling with increasing costs of cattle feed, veterinary services, and transportation. Milk federations across Karnataka have welcomed the cabinet’s decision, stating that it will help sustain the dairy industry in the state.

With this latest hike, consumers will have to pay more for milk and dairy products, but the government asserts that the move is essential for the welfare of farmers.