Karnataka hikes milk price by Rs 8

The Karnataka Cabinet on Thursday decided to hike Nandini brand milk prices by Rs 8 per litre, Minister Krishna Byre Gowda said. He said Rs 7 would go to farmers and Re 1 to the cooperatives (Karnataka Milk Federation). The price hike will be effective from November 1.

“Given the crisis faced by farmers, members of all parties in the Legislative Council had called for measures to support them. Milk producers themselves had taken to the streets in protest, and the cooperatives had also pressed for an increase,” Gowda said.

Speaking to reporters after the Cabinet meeting, he said, “Respecting these demands, the Cabinet has today decided to increase the price paid to milk-producing farmers by Rs 7 per litre. Additionally, the cooperatives will receive an increase of Rs 1 per litre. Thus, the total increase will be Rs 8 per litre.”

Karnataka Milk Federation (KMF) markets its dairy products under the Nandini brand.

“Although farmers demanded an increase of Rs 10 per litre, it was felt that so much increase cannot be done. After discussions in the Cabinet today, under the chairmanship of Chief Minister D K Shivakumar, we decided on an increase of Rs 8 per litre, of which Rs 7 will go to the farmers and Re 1 to the milk cooperatives,” he said.

Gowda said that currently, farmers in Karnataka receive around Rs 35 per litre, in addition to the government’s incentive of Rs 5 per litre. Going forward, the price paid to farmers will increase from Rs 35 to Rs 42 per litre. The government’s incentive of Rs 5 per litre will continue. “This means farmers will receive a total of Rs 47 per litre, including the government incentive. This will benefit lakhs of farming families,” he added.

Gowda said, the current selling price of milk is Rs 46 per litre, and with this increase of Rs 8 per litre, it will be Rs 54 per litre. Even at Rs 54, Karnataka’s price would remain lower than that in several other states, he added.