Karnataka has decided to raise milk prices to help farmers offset rising production and transport costs, Deputy Chief Minister D.K. Shivakumar said on Thursday, although the government has not specified the revised retail price or the date from which the increase will take effect.
Speaking to reporters, Shivakumar said farmers had been demanding a milk price increase for around one and a half years. “Farmers are important to us. This decision has been taken to help them,” he said, according to a report by Prajavani.
The proposed increase follows a rise in the cost of inputs and distribution. Shivakumar cited higher prices of plastic milk covers, diesel and petrol, along with increased transportation expenses. He said there had been a demand to raise the price by ₹12–₹15 per litre, but the statement did not clarify whether the entire amount would be passed on to consumers or indicate the final increase approved by the government.
The decision will affect the urban dairy supply chain at multiple points, from procurement and processing to packaging, cold-chain movement and retail sales. For households, the immediate impact will depend on the final price announced and whether the increase applies uniformly across products and markets. The source report did not provide details on the categories of milk or dairy products covered by the decision.
Shivakumar said the issue had been raised by legislators across party lines during the state legislature session. He also said a decision had earlier been delayed because of elections, but that the government had now proceeded with it. The remarks indicate that the price revision is being presented as a response to pressure on farmer returns rather than as a standalone retail adjustment.
The minister also addressed a separate demand from transport corporations and the transport department for a bus fare increase. He said the state’s Shakti scheme provides free bus travel for women and that transport bodies had sought higher fares. The transport department had been told to take a decision on the matter, he said.
His comments came amid criticism from Opposition Leader R. Ashoka that the government did not have enough money even to fuel buses. Shivakumar said transport corporations were facing substantial losses and that the situation had reached a point where there was no subsidy available for diesel. The remarks link the milk price decision to a broader debate over the financial pressure facing state-supported public services.
The government’s next public step will be to disclose the final revised milk price, the products covered, and the date of implementation. Until those details are announced, the extent of the increase for consumers and the additional amount reaching farmers remains unspecified.
