Karnataka’s milk price hike will raise the procurement-linked price paid to dairy farmers from ₹35 to ₹42 per litre, with the revised rates taking effect from November 1, Chief Minister D.K. Shivakumar said on Saturday. He described the increase as necessary because of higher cattle feed, fuel and packaging costs, along with a drought-related fall in daily milk collection.
In a post on X, Shivakumar said the Karnataka government remained committed to protecting dairy farmers’ livelihoods while keeping Nandini products affordable for consumers. Of the ₹8 increase per litre, ₹7 will go directly to farmers, taking the farmer-linked price to ₹42 per litre.
The state’s existing ₹5 incentive will also continue to apply, taking the total amount received by farmers to ₹47 per litre, according to the Chief Minister. He said a farmer supplying 10 litres of milk a day would receive approximately ₹2,100 in additional monthly income under the revised pricing structure.
The government estimates that the price revision will generate additional annual income of between ₹1,850 crore and ₹2,100 crore for rural dairy-farming families in Karnataka. Shivakumar said the state has 28.84 lakh dairy farmers and that 67% of Karnataka Milk Federation members are small and marginal farmers.
The Chief Minister linked the revision to pressures across the dairy supply chain. The cost of cattle fodder and feed has increased, while fuel and packaging expenses have also risen. He additionally cited the impact of drought on daily milk procurement, which affects the volume of milk available for processing and sale through the cooperative network.
The revised pricing will also affect retail rates for Nandini products. Shivakumar said Nandini toned milk would remain priced at ₹54 per litre after the revision and would still be cheaper than several major dairy brands in the country. Nandini Shubham milk, with 4.5% fat content, will cost ₹60 per litre, which he said was below the average price of ₹62.80 across 10 other states.
The government has presented the decision as an attempt to balance two competing pressures in Karnataka’s dairy system: improving returns for producers while keeping packaged milk within reach of consumers. The revised rates will apply from November 1, with the state continuing to provide the ₹5 per-litre incentive to eligible dairy farmers.
