Milk Prices in Karnataka Set to Rise by ₹5 Per Litre After State Budget on March 7

Karnataka residents are bracing for a ₹5 per litre hike in milk prices, set to take effect after the state budget is tabled on March 7. The Karnataka Milk Federation (KMF) is awaiting final government approval for the increase, which will also result in a reduction in milk packet quantity from 1,050 ml to a standard one-litre pack.

If implemented, the price of Nandini toned milk will rise from ₹44 to ₹47 per litre. This price hike will mark the steepest increase in three years, following previous increments of ₹3 per litre in 2022 and ₹2 in 2024. The additional 50 ml per litre, which was added during earlier hikes to soften the impact on consumers, will be eliminated with the upcoming price revision.

The proposed increase has drawn sharp criticism from opposition leaders. Leader of Opposition in the Karnataka Legislative Council, Chalavadi Narayanaswamy, accused the government of fiscal mismanagement. He stated, "For this government, there are no other options left except for raising prices because they don’t know how to manage the budget." He also questioned whether dairy farmers would benefit from the price hike, suggesting the government might not fulfill its promises to provide ₹5 per litre to farmers.

In defense of the price hike, KMF managing director B Shivaswamy explained that a decrease in milk procurement was a key factor behind the increase. "Earlier, we were procuring 85-89 lakh litres of milk a day. Now, we are receiving only 79-81 lakh litres daily. As a result, the extra supply to consumers will stop," Shivaswamy said. He also noted that even after the price adjustment, Nandini milk will remain more affordable compared to several other brands in Karnataka and neighboring states.

This price hike comes at a time when residents in Karnataka are already facing rising costs for essential goods and services. Coffee powder prices are expected to increase by ₹200 per kg by March, and public transport fares for BMTC buses and Namma Metro have already been raised. In addition, the state government is considering raising water tariffs, while electricity supply companies (Escoms) have requested approval for a 67 paise per unit increase in power tariffs.