Categories: Karnataka

Nandini Milk Price Hike Demand Reaches Karnataka Government

Karnataka milk unions are seeking a higher Nandini milk price as farmers face rising costs, while the government compares procurement rates across states before making a final decision on it.

Published by
Sai Teja

The demand for a revision in Nandini milk prices has gained fresh attention in Karnataka, with milk unions asking the state government to consider a substantial increase in both procurement and retail rates.

Representatives of the milk unions have sought an increase of around Rs 8 to Rs 10 per litre, citing the growing cost of dairy farming and pressure on milk producers. Chief Minister D K Shivakumar has asked officials to collect detailed information before a final decision is taken.

One of the main points raised by the unions is the difference between what dairy farmers receive in Karnataka and the procurement rates cited in several other states. Farmers supplying toned milk through cooperatives in Karnataka currently receive around Rs 35 per litre, according to figures presented by the unions.

The figures cited for other states are higher. The procurement rate mentioned for Andhra Pradesh is around Rs 41.50 per litre, while Maharashtra is around Rs 41 and Tamil Nadu is around Rs 42.24. Kerala has also been cited at around Rs 41.80 per litre.

The comparison has become an important part of the current discussion because milk producers in Karnataka say their earnings have not kept pace with the cost of maintaining cattle. The unions have pointed to higher prices for cattle feed, fodder, veterinary medicines, fuel and other requirements involved in dairy production.

Drought conditions have added another layer of difficulty for many farmers. Reduced availability of fodder and weaker agricultural income can increase the expense of maintaining cattle, while lower milk production can make it harder for farmers to manage their household earnings.

The unions have therefore argued that a price revision is needed to make dairy farming more sustainable. Their demand is not limited to the retail price paid by consumers. They are also seeking better procurement returns for milk producers.

Chief Minister D K Shivakumar has not announced an immediate increase. Instead, he has asked officials and milk union representatives to prepare detailed comparisons covering production costs, procurement, sales and milk prices in neighbouring states. The information is expected to be considered before the matter goes before the state Cabinet.

The government is also looking at how milk prices have changed over recent years and how the cost of producing a litre of milk has moved during the same period. The aim is to understand the gap between production expenses, payments to farmers and the price paid by consumers.

According to the figures presented by the unions, some of the procurement rates outside Karnataka are noticeably higher. Amul has been cited at around Rs 40.50 per litre in Delhi and around Rs 40 in Maharashtra, while Vijay brand in Telangana has been cited at Rs 41.05. Aavin in Tamil Nadu has been cited at Rs 42.24 per litre.

The retail price of Nandini milk is also part of the discussion. Karnataka had last revised its milk prices in April 2025, when the government increased the price by Rs 4 per litre. Following that revision, toned Nandini milk was priced at Rs 46 per litre.

For consumers, another price increase would naturally mean a higher monthly household expense. Milk is purchased regularly by families, making even a relatively small increase noticeable over time. This is one reason the government is examining the issue alongside the concerns raised by dairy farmers.

For milk producers, however, the argument is that the current procurement rate does not adequately reflect the expenses involved in running a dairy operation. Feed, fodder, medicines, transport and cattle maintenance all contribute to the final cost of producing milk.

Competition from private dairies is another concern raised by cooperative milk unions. According to representatives, private companies offering higher procurement rates can put additional pressure on cooperative unions to retain their milk supply.

The issue has therefore developed into a balance between farmer income and consumer prices. Milk unions want better returns for producers, while the government has to consider the effect of any increase on households that depend on Nandini milk.

The final decision will depend on the comparative data being collected by the government and the discussion that follows in the Cabinet. Until then, the proposed increase remains a demand rather than an approved revision.

The discussion also highlights the wider financial pressure facing dairy farmers in Karnataka. With production expenses rising and weather conditions affecting fodder availability, farmers say maintaining cattle has become increasingly difficult.

For Nandini customers, the immediate question is whether the proposed increase will eventually change the price of milk sold in Karnataka. For farmers, the larger concern is how much of any approved increase will actually reach them through the procurement system.

The Karnataka government is now examining these issues before deciding the next step. Any change in Nandini milk prices will depend on the final government decision and the official revision announced by the milk federation.

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