The price of milk in Karnataka is set to increase by Rs 5 per litre following the state budget on March 7, impacting the cost of tea, coffee, curd, and other dairy products. The Karnataka Milk Federation (KMF) has proposed the price hike, which is awaiting final approval from the state government.
Along with the price hike, the quantity of milk per packet will be reduced from the current 1,050 ml to one litre, reversing the additional 50 ml introduced last year. If implemented, the cost of a litre of Nandini toned milk will rise from Rs 44 to Rs 47, marking the most significant price hike by KMF in the last three years.
In 2022, KMF raised milk prices by Rs 3 per litre, and in 2024, it implemented a Rs 2 increase per packet while adding 50 ml extra per litre. At the time, KMF justified the increase by stating that the additional quantity meant there was no real price hike. With the new proposal, the quantity will revert to one litre per packet, increasing the effective cost per unit volume.
The proposed hike has sparked criticism, with Leader of Opposition in the Karnataka Legislative Council, Chalavadi Narayanaswamy, accusing the state government of financial mismanagement. “For this government, there are no other options left except for raising prices, because they don’t know how to manage the budget,” he said. He further alleged that the state has seen “no development” and that citizens are struggling due to repeated price hikes.
Criticising the milk price hike, Narayanaswamy added, “Only milk items were left, but those prices have also been increased now. I don’t know how many more hikes they’ll do next.” He also questioned whether the government would truly pass on the additional Rs 5 per litre to dairy farmers or retain a portion for itself. “Their manifesto states that they will give Rs 5 to farmers, but will they actually provide it, or put it in their pocket?” he asked.
The increase in milk prices comes amid a series of price hikes affecting essential commodities and services in Karnataka. The coffee brewers association has already announced a Rs 200 per kg increase in coffee powder prices by March.
Public transport costs have also risen, with ticket rates for BMTC buses and Namma Metro increasing. Additionally, the state government is considering an increase in water tariffs, while electricity supply companies (Escoms) have requested the Karnataka Electricity Regulatory Commission to approve a power tariff hike of 67 paise per unit for the upcoming financial year.