Bengaluru coffee and tea prices are set to rise after the Karnataka government increased the price of Nandini milk by ₹8 per litre, with the Bengaluru Hotels Association saying hotels and darshinis will raise prices of milk-based products from November 1.
Coffee and tea currently cost between ₹20 and ₹48 at hotels in Bengaluru, according to the report. The planned increase will also affect products made with milk, including curd, butter, ghee, khoya-based sweets and several North Indian dishes.
The Bengaluru Hotels Association said the decision followed a sharp rise in operating costs across the food-service sector. Hotel owners have cited higher prices for rice, pulses and other food items, along with increased transportation expenses and cooking-gas costs.
Association president P.C. Rao said the ₹8-per-litre increase was unusually steep and would put additional pressure on both ordinary consumers and the hotel industry. He said milk prices had generally been increased by ₹2 or ₹3 at a time, and objected to the latest increase being implemented in a single step.
The association has indicated that hotels may not raise prices all at once. Instead, owners are expected to increase rates in stages as they assess the impact of higher milk and other input costs. The final increase may vary between establishments depending on their product mix, purchase costs and operating expenses.
Milk is a direct input for beverages such as tea and coffee, but its impact extends across a wider range of Bengaluru’s affordable food network. Darshinis and neighbourhood hotels use milk, curd, butter and ghee in daily operations, while sweets and prepared dishes can require larger quantities of dairy products. Any increase in these inputs can therefore affect menu prices beyond the basic cup of tea or coffee.
The association has urged the state government to control the increase in the prices of Nandini milk and dairy products. It has also called for tighter control over the administrative costs of the dairy business and financial support for milk producers as alternatives to passing the entire cost increase on to consumers.
The price decision comes after milk producers and dairy organisations had sought an increase over several months. The government subsequently approved the higher Nandini milk price, triggering concern among hotel operators about the combined effect of dairy, food, transport and fuel-related costs.
For Bengaluru residents, the immediate impact will be felt in the city’s extensive network of small hotels, darshinis and quick-service eateries, where tea, coffee and affordable meals are routine purchases. The association’s statement indicates that revised prices are expected to begin appearing after November 1, although the report does not specify a uniform rate or a common menu-price revision across all establishments.
