Bengaluru: The Karnataka government is considering an increase in the retail price of Nandini milk after the state’s 16 cooperative milk unions sought a hike of Rs 8 to Rs 10 per litre, citing rising production and dairy management costs.
The government is reportedly considering a more moderate increase of around Rs 4 to Rs 5 per litre. However, the revised retail price and implementation date have not yet been officially notified.
Milk unions seek higher prices
Representatives of Karnataka’s milk unions have repeatedly sought an increase in milk prices, pointing to higher expenditure on cattle feed, fodder, veterinary care, processing and other inputs.
A delegation of milk unions met Chief Minister D K Shivakumar and submitted a demand for an Rs 8 to Rs 10 per litre increase. The Chief Minister sought detailed information on procurement costs, processing expenses, milk sales and pricing in other states before a decision is taken.
Milk union representatives have also highlighted the impact of the ongoing drought on dairy farmers, particularly the reduced availability of fodder.
According to figures cited by milk producers, KMF’s daily milk procurement had fallen from around 1.11 crore litres three months earlier to approximately 1.03 crore litres amid the difficult conditions.
Government considering moderate increase
Reports indicate that the government has been considering an increase of around Rs 4 to Rs 5 per litre instead of the Rs 8 to Rs 10 sought by the unions.
The exact distribution of any additional revenue between producers and cooperative unions is also under discussion. Recent reports from the Assembly said Hassan milk union president H D Revanna sought a substantial share of any increase for cooperative unions, citing financial losses faced by the organisations.
The final decision is expected to take into account the interests of milk producers, cooperative unions and consumers.
Procurement prices compared with other states
Milk union representatives have pointed to differences in procurement prices between Karnataka and neighbouring states.
According to figures presented during the discussions, toned milk is procured from producers in Karnataka at around Rs 35 per litre, compared with Rs 41.50 in Andhra Pradesh, Rs 41 in Maharashtra and Rs 42.24 in Tamil Nadu. Another report cited Kerala’s procurement price at Rs 41.80 per litre.
Union representatives have argued that the comparatively lower procurement price is putting pressure on dairy farmers, particularly when input costs are rising.
The last increase in Nandini milk prices in Karnataka was implemented in April 2025. At that time, the price of toned milk was raised to Rs 46 per litre, while homogenised toned milk was priced at Rs 47. Cow milk and special milk were priced at Rs 50 per litre.
Drought adds pressure on dairy sector
The proposed price revision comes amid a wider drought situation in Karnataka.
Milk producers have said the shortage of fodder has affected both the cost of maintaining cattle and the volume of milk available for procurement. Higher expenditure on feed, medicines and veterinary care has added to the financial burden on dairy farmers.
The issue was also raised during the ongoing Assembly debate on drought. Congress legislators sought an increase in milk prices, with some members supporting the unions’ demand for an Rs 8 to Rs 10 per litre hike.
At the same time, any increase in the retail price would have a direct impact on households that purchase milk regularly.
Final price yet to be notified
While reports of a possible Rs 4 to Rs 5 increase have emerged, the revised Nandini milk price cannot be treated as final until the government issues an official order.
The government is examining cost and pricing data before deciding the quantum of the hike and how any additional amount will be distributed through the dairy cooperative system.
The final revised retail rate, the share allocated to milk producers and cooperatives, and the date from which the new price will apply are expected to be specified in the official notification.