Consumers across Karnataka will face a price increase for Nandini milk starting November 1, as the state government has officially approved a hike of ₹8 per litre. The decision, which follows months of requests from milk unions citing financial strain, aims to provide better support to the dairy farmers who form the backbone of the state's rural economy.
According to the official announcement, the revenue generated from this price revision will be split between producers and cooperatives. Karnataka Minister Krishna Byre Gowda confirmed that dairy farmers would receive ₹7 out of the ₹8 increase. The remaining ₹1 per litre will be allocated to milk unions to help manage operational costs. This adjustment comes as a necessary measure to sustain the livelihood of nearly 10 lakh farmer families who depend on dairy farming.
The hike will significantly boost the income of these farmers. Previously receiving around ₹35 per litre, the direct increase will push their base earnings to ₹42 per litre. When combined with the existing government incentive of ₹5 per litre, dairy farmers are set to receive a total of ₹47 per litre. This direct financial support is intended to help families cover essential household and medical expenses, which have become increasingly difficult to manage due to rising inflationary pressures.
Milk unions had been vocal about the need for a price revision, pointing to a sharp escalation in input costs over the past year. Factors such as rising prices for cattle feed, essential medicines, transportation, and plastic packaging have placed a heavy burden on the sector. Furthermore, persistent drought conditions in various parts of the state have led to a critical shortage of green and dry fodder, forcing farmers to purchase supplies at higher costs, thereby eroding their profit margins.
The proposal for this price increase was initially cleared by the state Cabinet on October 6. However, the official announcement was deferred due to the Model Code of Conduct, which had been in effect for the Legislative Council elections. With the electoral process concluded, the government has moved forward with the implementation of the new rates to ensure the stability of the milk supply chain.
This latest adjustment marks the fifth time Nandini milk prices have been revised in recent years. Previous hikes occurred in March 2025, when prices rose by ₹4 per litre, and in June 2024, when a ₹2 per litre increase was introduced alongside a temporary offer of extra milk quantity. Prior to that, adjustments were made in November 2023 and November 2022 to address similar concerns regarding market conditions and production viability.
The milk unions had originally sought an increase ranging between ₹8 and ₹10 per litre, underscoring the severity of the economic challenges facing the dairy industry. By setting the hike at ₹8, the government hopes to balance the needs of the consumer with the urgent requirement to keep the state's dairy sector sustainable. As of now, the new pricing structure is set to take effect across the state at the beginning of November, providing a much-needed financial buffer for the farming community.
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