Karnataka Cabinet clears Rs 8 per litre hike in Nandini milk price; farmers to get Rs 42 plus incentives from 1 November
Chief Minister DK Shivakumar defended the decision, saying the hike was necessary to prevent losses to dairy farmers amid rising production and transportation costs.
Synopsis: The Karnataka Cabinet has approved an ₹8 per litre increase in Nandini milk prices from November 1, with ₹7 going to farmers and ₹1 to milk unions. Chief Minister DK Shivakumar said the increase was intended to address rising production and transportation costs and prevent milk from being diverted to neighbouring States offering higher prices.
Consumers will pay ₹8 more per litre for Nandini milk supplied by the Karnataka Milk Federation (KMF) from November 1, following a Cabinet decision on Thursday, 29 October.
Of the increase, ₹7 will go towards raising the procurement price paid to dairy farmers from ₹35 to ₹42 per litre, while the remaining ₹1 will go to milk co-operative societies to meet their expenses.
The price of basic toned milk, sold in blue packets, will increase from ₹46 to ₹54 per litre.
The State government’s existing incentive of ₹5 per litre will continue, taking the total amount received by farmers to ₹47 per litre.
Briefing reporters after the Cabinet meeting, Bengaluru Development and Parliamentary Affairs Minister Krishna Byre Gowda said the decision was taken unanimously after discussions in the Cabinet. Farmers had sought an increase of ₹10 per litre, but the Cabinet settled on ₹8.
“When diesel and petrol prices reach ₹100, it is not questioned. But when it comes to increasing the price of one litre of milk for farmers, there is so much discussion. Why is that?” the Minister said.
He said the increase would benefit lakhs of farming families and provide them with greater income security.
Chief Minister DK Shivakumar defended the decision, saying the hike was necessary to prevent losses to dairy farmers amid rising production and transportation costs.
“There has been a demand to increase milk prices for the last one or two years. Transportation costs have increased, diesel and petrol prices have gone up, vehicle costs have risen, and even the price of plastic covers has increased,” Shivakumar told reporters in Bengaluru.
He said milk was being diverted to neighbouring States because procurement prices in Karnataka were comparatively lower. “Since the price was low here, milk was being transported to Andhra Pradesh, Tamil Nadu and Maharashtra. We wanted to prevent this and ensure that sufficient milk remained available in Karnataka,” he said.
Shivakumar added that legislators across party lines had demanded a price revision in the Assembly and Legislative Council, but a decision could not be taken earlier because of elections.