The ₹4 per litre milk price hike in Karnataka is expected to benefit farmers amid rising production costs. However, the allocation of the increase between farmers and unions remains under discussion. The decision is sure to come as a burden on consumers.
Published Mar 27, 2025 | 3:57 PM ⚊ Updated Mar 27, 2025 | 5:50 PM
Karnataka Government approves ₹4 per litre milk price hike
Synopsis: The Karnataka government has approved a ₹4 per litre milk price hike, following a request for a ₹5 increase from the Karnataka Cooperative Milk Producers’ Federation and District Milk Unions. However, it’s unclear whether the entire hike will benefit farmers or unions. This decision follows a ₹2 price hike for additional 50 ml quantity in each packet in June 2024.
In a move that has been the subject of much speculation, the Karnataka state government has officially approved a ₹4 per litre increase in milk prices.
However, questions remain as to whether the full hike will benefit farmers directly or be allocated to milk unions. This decision comes after milk prices were increased by ₹2 in proportion to additional 50 ml per 500 ml packs by the state government in June 2024.
The decision follows a request made on Monday, 24 March, by the President of the Karnataka Cooperative Milk Producers’ Federation Limited and the Managing Directors of various District Milk Unions.
They had approached Chief Minister Siddaramaiah, urging a ₹5 per litre price hike. In response, the Chief Minister assured that the matter would be discussed in a cabinet meeting.
After a lot of speculation, the #Karnataka Chief Minister and his cabinet has given approval to increase Rs 4 per litre for milk in the state. However, the cabinet is yet to clarify whether the complete hike in the price will be transferred to the farmers or the milk unions. It… pic.twitter.com/9S1OZpme8N
— South First (@TheSouthfirst) March 27, 2025
During the meeting, Siddaramaiah emphasised the government’s firm stance, stating that any increase in milk prices should be fully passed on to farmers, not to the milk unions.
Further details on how the price hike will be implemented, including the mechanism for ensuring the farmers’ share, are still awaited.
This decision is likely to have a significant impact on the dairy industry in Karnataka, known for being one of the leading milk-producing states in India. Farmers are hopeful that this price hike will provide them with much-needed relief amid rising costs of production. However, the final distribution of the price increase remains a critical point of discussion.
(Edited by Ananya Rao with inputs from Rashmi Patil)
