Bengaluru: Just when households thought inflation had finally eased, Karnataka Milk Federation (KMF) has delivered another jolt — this time in the form of a steep ₹90 per litre hike in Nandini ghee prices. The increase, which took effect immediately, has pushed the price of a litre of Nandini ghee from ₹610 to ₹700.

Adding to consumers’ woes, the price of butter has also been raised — from ₹544 to ₹570 per kilogram — creating a double blow for households and hoteliers alike.

Price hike shocks consumers

The sudden revision has left consumers upset, especially since KMF had only weeks ago cut Nandini ghee prices from ₹650 to ₹610 following the implementation of revised GST 2.0 slabs.

“The joy of that price reduction lasted just a few days,” said Krishnamayi, a homemaker from Whitefield. “We buy Nandini products with pride, but frequent price hikes are making them unaffordable. This might push many towards other brands.”

Social media platforms too saw a wave of criticism from consumers who said the back-to-back price fluctuations were eroding trust in the cooperative brand.

KMF defends price hike

KMF, however, defended the move, calling it an economic necessity. D K Suresh, chairperson of Bengaluru Milk Union Limited (BAMUL), said the increase was essential to offset mounting operational costs.

“The adjustment was inevitable as global ghee and butter prices have risen considerably and demand has surged,” Suresh explained. “We collect about 95 lakh to one crore litres of milk every day, but only 50 lakh litres are sold in retail. Additionally, the state government has increased the procurement price of milk by ₹4 per litre to support farmers.”

He maintained that even after the revision, Nandini ghee remains competitively priced compared with private brands.

Impact on hotel industry

The hospitality sector is feeling the pinch as well. Hoteliers, who rely heavily on ghee and butter for daily cooking, warned that the hike could affect menu pricing and overall profitability.

P C Rao, president of the Bruhat Bangalore Hotels Association, said: “A nominal hike of 5 to 6 per cent would have been acceptable, but an increase of 13 to 14 per cent will impact business. We’ll hold talks with KMF to find a way around this crisis before letting diners feel the pinch.”

Many restaurants, particularly those serving traditional South Indian dishes like dosas and sweets, are considering absorbing the costs temporarily, hoping for a rollback or a price stabilisation in the coming months.

Farmers’ perspective

The state government’s recent decision to raise the milk procurement rate by ₹4 per litre has benefited thousands of dairy farmers, but it has also strained KMF’s balance sheets, as the cooperative must bear higher purchase costs.

According to officials, the higher ghee and butter prices will help sustain the cooperative model and ensure timely payments to farmers. “It’s a difficult balancing act,” a KMF official said. “We need to protect both farmers’ interests and consumer affordability.”

What lies ahead

While KMF insists the increase is temporary and linked to global commodity trends, experts say volatile milk fat prices could lead to more fluctuations in the coming months.

Economists suggest that steady procurement, better inventory management, and strategic export decisions could help KMF stabilise prices without burdening consumers.

For now, however, households and hoteliers will have to bear the brunt of costlier kitchen staples—just ahead of the festive season when demand for ghee and butter peaks.