Nandini Milk Price Hike Likely in Karnataka, Rates May Rise by INR 4 to INR 5 per Litre
Karnataka is considering an in principle hike of INR 4 to INR 5 per litre on Nandini milk after dairy cooperatives cited drought, rising fodder costs and a wide procurement price gap with neighbouring states, with the extra revenue likely split 70:30 between farmers and milk unions.
Households across Karnataka may soon see their monthly grocery bills rise as the state government weighs an in principle increase of INR 4 to INR 5 per litre on Nandini milk. The potential price revision follows sustained appeals from the Karnataka Milk Federation (KMF) and regional dairy cooperative unions, which have warned that severe drought conditions and mounting operational costs are placing significant financial pressure on milk producers.
If approved, the retail price of standard Nandini toned milk is expected to rise from the current INR 46 per litre to around INR 50 to INR 51 per litre, with corresponding price adjustments likely for dairy staples such as curd and buttermilk.
Rising Input Costs And Fodder Shortages
The proposed revision comes in the wake of representations made by Karnataka's 16 district milk cooperative unions, which had initially sought an increase of INR 8 to INR 10 per litre. Cooperative representatives have highlighted sharp increases in expenses for cattle feed, fodder and veterinary care over the past year. Maharashtra Milk Price Hike From August 11: Milk To Cost INR 2 More per Litre.
Drought conditions across several districts have worsened the crisis, reducing local fodder availability and hampering overall yield, with KMF's daily milk procurement reportedly falling from approximately 1.11 crore litres to 1.03 crore litres in recent months, underlining the operational challenges on the ground. In legislative discussions, representatives noted that the cost of milk production has climbed to over INR 42 per litre, while producers have been receiving around INR 35 per litre through village cooperative societies, leaving a significant deficit for farmers to bear. Mumbai Milk Price Hike: Tabela Milk Rates To Rise by INR 9 per Litre From September 1.
Procurement Disparity Across State Borders
Dairy federations have also pointed to procurement rates in neighbouring southern states to justify the need for an adjustment. While Karnataka dairy farmers receive roughly INR 35 per litre, procurement prices stand notably higher in neighbouring regions, with Tamil Nadu at around INR 42.24 per litre, Andhra Pradesh at around INR 41.50 per litre, and Maharashtra at around INR 41 per litre. The substantial price difference has raised concerns among local cooperatives regarding milk diversion and the sustained viability of smallholder farmers within Karnataka.
Revenue Sharing And Next Steps
To strike a balance between consumer inflation and farmer welfare, the state government is considering a smaller increase than the INR 8 to INR 10 requested by the unions. Under the proposed structure, the additional revenue generated from the INR 4 to INR 5 per litre increase is expected to be distributed between dairy producers and the milk unions in a 70:30 ratio, directing the majority of the proceeds directly to farmers. State authorities and KMF leadership are reviewing comparative market data and household impact assessments before finalising the decision, and until an official government notification is published, existing retail prices remain in effect.
(The above story first appeared on LatestLY on Sep 27, 2026 09:21 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
