Karnataka milk prices to rise by Rs 8 per litre
Chief Minister D K Shivakumar defended the hike as necessary to protect farmers during a severe drought.
Karnataka Chief Minister D K Shivakumar on Saturday defended a milk price increase, stating it was required to safeguard farmers' interests during a severe drought in the state. The Karnataka Cabinet approved the Rs 8 per litre increase across all milk categories on Thursday, according to reports by Hindustan Times and The Pioneer.
Shivakumar told reporters in Bengaluru that milk production has declined due to the drought and farmers have been moving milk to neighbouring states where prices are higher. He noted that milk producers had requested a hike of Rs 12 per litre.
Of the Rs 8 increase, Rs 7 will be paid to farmers, which raises the procurement rate from Rs 35 to Rs 42 per litre. The remaining Re 1 will be used by milk unions for operational costs. Including a Rs 5 government incentive, farmers will receive Rs 47 per litre.
The Chief Minister said the revision, effective from November 1, was driven by rising costs for labour, fodder, fuel, and packaging. He added that the move is expected to provide dairy farming families with an additional annual income of Rs 1,850 crore to Rs 2,100 crore.
Regarding a Rs 14 per kg increase in Nandini curd, Shivakumar said the Karnataka Milk Federation decides those prices. He stated the government only intervened in milk pricing and that higher fat content leads to higher rates.
Shivakumar noted that Karnataka has 28.84 lakh dairy farmers, with 67 per cent of KMF members being small and marginal farmers. He said the government aims to protect livelihoods while keeping Nandini products affordable.