Full Breakdown
Karnataka Raises Nandini Milk Procurement Price by Rs 8 per Litre
By Drooid · · How we work
In this breakdown
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Core Event: Price Revision Effective Nov 1
The Karnataka Cabinet approved an Rs 8-per-litre increase in the base price of Nandini milk, raising the retail price of the basic toned variety from Rs 46 to Rs 54 per litre. The hike takes effect on November 1. Under the new formula, Rs 7 of the increase goes to dairy farmers and Rs 1 to the Karnataka Milk Federation (KMF) and other milk unions.
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Background & Context: Drought-Driven Cost Pressures
State officials linked the revision to a severe drought affecting roughly 228 taluks, which has cut daily milk procurement by about 10 lakh litres. Farmers report higher input costs for feed, fodder, medicines, transport and packaging. Earlier attempts to raise the price were postponed because the Model Code of Conduct was in force for Legislative Council elections; the Cabinet originally approved the proposal on October 6 but delayed announcement until after the polls, whose results were declared on October 27.
Visual evidence
Images from the story
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Timeline
- October 14 – Cabinet discussed a possible Rs 8-per-litre increase.
- October 6 – Initial approval of the Rs 8 hike (announcement delayed).
- October 29 – Cabinet formally approved the increase.
- November 1 – Revised price becomes effective.
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Data & Statistics
- Current base price: Rs 46 / litre (blue-packet toned milk).
- New base price: Rs 54 / litre.
- Allocation: Rs 7 / litre to farmers; Rs 1 / litre to milk unions.
- Farmer remuneration: Base price to farmers rises from Rs 35 / litre to Rs 42 / litre; with the existing state incentive of Rs 5 / litre, total farmer receipt becomes Rs 47 / litre.
- Historical context: Fifth price hike in recent years (previous increases: Rs 4 in March 2025, Rs 2 in June 2024, Rs 3 in November 2023 and November 2022).
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Official Statements & Responses
Minister Krishna Byre Gowda said the increase is intended to offset rising production costs and support “lakhs of farming families” amid drought-induced distress. Cooperation Minister Laxman Savadi added the hike will also raise prices for ghee, butter, cheese and other dairy products processed by KMF. The state government noted that the Rs 1 allocated to milk unions will cover higher packaging, transport and fuel expenses.
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Criticism & Opposition
The Bengaluru Hotels Association warned that the steep Rs 8 increase will force hotels and restaurants to raise prices of coffee, tea, snacks and meals that rely on milk, urging the government to limit the hike to Rs 2-3 per litre. Legislative Council member Basavaraj Horatti argued that raising essential service prices—including milk and public transport—would further strain low-income households.
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On-the-Ground Reports
Milk producers staged street protests in Bengaluru, demanding a higher revision. Representatives of dairy cooperatives met the Chief Minister and relevant ministers, initially seeking an increase of at least Rs 10 per litre. The Cabinet settled on Rs 8 after weighing farmer demands against potential consumer impact.
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What’s Next
The revised procurement price will be applied from November 1. KMF and individual milk unions will set final retail prices based on fat and SNF content, potentially leading to varied consumer rates across the state.