Karnataka Chief Minister D K Shivakumar has defended the state government’s decision to increase milk prices by ₹8 per litre, stating that the revision is essential to protect dairy farmers’ livelihoods, particularly at a time when the state is facing severe drought conditions.
Speaking to reporters on Saturday, Shivakumar said the price revision was necessary to ensure better financial returns for milk producers and sustain dairy farming. He also linked the decision to the government’s commitment to protecting cattle, describing the cow as Gomata, or a mother deserving respect and care.
The Karnataka Cabinet approved an ₹8 per litre increase across all categories of milk on Thursday. According to the Chief Minister, dairy farmers had initially demanded an increase of ₹12 per litre.
Shivakumar pointed out that milk prices in neighbouring states were considerably higher, prompting some Karnataka farmers to divert their milk supplies to those markets. He also expressed concern over declining milk availability and reduced production due to drought.
“We have no other option. If we want to protect our cows, we must provide them with good food. This requires adequate fodder, and farmers must have sufficient financial resources to ensure its availability. Only when farmers are financially secure can they sustain dairy farming. Otherwise, milk production will continue to decline,” he said.
He added that the government had carefully considered the prevailing drought conditions before approving the revision. The Chief Minister also noted that milk prices had remained unchanged for several years, making an upward revision necessary.
₹7 Per Litre Increase to Go Directly to Farmers
Explaining the financial benefits of the revision, Shivakumar said that out of the total ₹8 increase per litre, ₹7 would be passed directly to milk producers, taking the procurement price from ₹35 to ₹42 per litre. The remaining ₹1 would go to milk unions to meet their operational expenses.
Including the existing ₹5 government incentive, dairy farmers will now receive ₹47 per litre of milk. Also Read| All variants of packaged milk and curd of Nandini brand cost ₹2/liter
The Chief Minister said that a farmer supplying 10 litres of milk daily would earn an additional ₹2,100 per month following the revision.
He further estimated that the revised procurement price would generate an additional annual income of ₹1,850 crore to ₹2,100 crore for dairy farming families across Karnataka.
The state has approximately 28.84 lakh dairy farmers, with small and marginal farmers accounting for 67 per cent of KMF members. Shivakumar described the decision as an important step towards ensuring fair remuneration for the efforts of dairy farmers.
Higher Production and Operational Costs Behind Price Revision
In a subsequent post on X, the Chief Minister reiterated that the government remained committed to protecting dairy farmers’ livelihoods while ensuring that Nandini products continued to be affordable for consumers.
He identified rising fodder and labour costs, higher fuel and packaging expenses, and declining daily milk procurement due to drought as the major factors behind the price revision.
The revised milk prices will come into effect from November 1.
Nandini Milk Prices Remain Competitive
Addressing concerns over the impact of the price increase on consumers, Shivakumar maintained that Nandini milk would continue to be competitively priced compared with several other leading dairy brands in the country.
Even after the revision, Nandini toned milk will cost ₹54 per litre, which remains lower than the prices charged by several major dairy brands.
Similarly, Nandini Shubham milk, which contains 4.5 per cent fat, will be priced at ₹60 per litre, compared with an average price of ₹62.80 in 10 other states.
Responding to questions about the ₹14 per kg increase in Nandini curd prices, Shivakumar clarified that curd pricing was under the purview of the Karnataka Milk Federation (KMF). He said the state government had intervened only in milk pricing, while other product prices were determined based on factors such as fat content and the corresponding pricing structure.
Reaffirming the government’s position, the Chief Minister said Karnataka was committed to balancing the interests of dairy farmers with the needs of consumers by ensuring fair prices for producers and a reliable supply of quality milk at affordable rates.
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