Karnataka hikes milk price by ₹4 per litre from April 1; move to benefit farmers

The Karnataka Cabinet on Thursday (March 28) approved a ₹4 per litre hike in the price of Nandini milk, ensuring that the entire additional amount will go directly to dairy farmers. The decision follows sustained pressure from milk cooperatives, farmer organisations, and the Department of Animal Husbandry.

The revised pricing, which will come into effect from April 1, marks a major shift in the state's milk procurement policy. It aims to boost farmers’ earnings in the face of rising production costs, while carefully balancing consumer affordability.

Also read: Karnataka: Nandini milk prices will increase by Rs 2 starting Wednesday

Farmers' demands

Chief Minister Siddaramaiah had earlier opposed any blanket hike but indicated openness if the entire increment was passed on to farmers. “Only if the hike benefits farmers directly, will it be considered,” he had said during meetings with Karnataka Milk Federation (KMF) officials.

Farmer groups, including the Karnataka Rajya Raitha Sangha and Green Brigade, have been demanding a substantial increase. On February 10, they staged a protest outside the KMF office in Bengaluru, pressing for a milk procurement price of ₹50 per litre and an interim support price of ₹10 per litre.

State lags behind

The hike follows a similar ₹2 revision in June 2024, when an additional 50 ml of milk was added to each packet to offset criticism. Even after the latest increase, Karnataka’s milk remains cheaper than in neighbouring states—milk is priced at ₹53-₹56 per litre in Gujarat, ₹52 in Kerala, and ₹56 in Andhra Pradesh. Nandini milk currently retails at ₹44 per litre for the standard blue packet.

Sources said KMF had initially lobbied for a ₹5 hike, but the Cabinet settled on ₹4 to strike a balance between farmer interests and consumer sentiment.

Also read: Nandini milk in Karnataka is now 'smart' with Vitamin A and D

Balancing act

The hike reflects the state government’s delicate attempt to appease protesting farmers without triggering backlash from urban consumers. It also reinforces the role of cooperative milk federations in supporting rural livelihoods.

With this move, Karnataka joins other states in reassessing milk pricing as inflation and input costs weigh heavily on dairy producers.