Bengaluru: In a significant decision expected to impact both consumers and the agricultural sector, the Karnataka state government has officially approved a price hike of Rs 8 per litre for milk. The revised milk prices will come into effect across the state starting November 1. This move comes as a major relief to the state’s dairy farmers, who have been consistently protesting and demanding an increase in procurement prices to offset their rising operational costs.
According to the official announcement, the Rs 8 hike will be distributed carefully to ensure maximum benefit to the grassroots producers. Out of the increased amount, Rs 7 will directly go to the milk-producing farmers, while the remaining Rs 1 per litre will be allocated to the dairy cooperative societies to help maintain their operational margins.
The decision was formally announced by Karnataka Minister Krishna Byre Gowda following a crucial cabinet meeting on Thursday. Addressing the media, the minister emphasized that the state government was highly sensitive to the economic hardships faced by the farming community.
“The decision to increase milk prices was taken keeping in mind the financial difficulties of the farmers. They have been raising their voices for a long time, and even held protests to press for this demand,” Gowda explained. He added that the issue had also gained bipartisan support, with members from various political parties in the Legislative Council urging the government to provide immediate financial relief to the state’s dairy farmers.
Interestingly, representatives of the farming community had initially met with the Chief Minister, the Animal Husbandry Minister, and the Cooperation Minister, demanding a steeper hike of at least Rs 10 per litre. However, after extensive deliberations within the cabinet, a consensus was reached that a Rs 10 hike would place an excessive burden on consumers, leading the government to settle on the Rs 8 increment.
Currently, dairy farmers in Karnataka receive approximately Rs 35 per litre for their milk. With the new Rs 7 increment, their basic procurement price will jump to Rs 42 per litre. Furthermore, the state government’s existing incentive of Rs 5 per litre will remain intact. Consequently, the total remuneration for the farmers will now amount to a substantial Rs 47 per litre.
While the government maintains that this move will financially uplift millions of farming families across Karnataka, the exact extent to which consumers will feel the pinch depends on how individual milk brands—primarily the state-run cooperative brand Nandini—adjust their retail rates in the coming days.