Karnataka’s cabinet has approved an Rs 8 per litre increase in Nandini milk prices, taking the retail rate from Rs 46 to Rs 54 per litre from November 1. The increase will channel Rs 7 per litre to milk-producing farmers and Rs 1 per litre to dairy cooperative societies, according to Minister Krishna Byre Gowda.
The decision was announced after a cabinet meeting chaired by the chief minister. Gowda said the cabinet had considered the issue two or three times before reaching a unanimous decision. The announcement had earlier been held back because of the Legislative Council election and the model code of conduct, which has since been withdrawn.
The revised price will affect consumers purchasing Nandini milk across Karnataka. For a household buying one litre a day, the increase would raise the monthly milk bill by about Rs 240, based on a 30-day month. The final impact on individual households will depend on their daily consumption and the quantity of milk products they purchase.
The minister said dairy farmers had been seeking higher returns amid what he described as a crisis affecting milk producers. Farmer representatives from cooperative societies had met the chief minister, the animal husbandry minister and the cooperation minister, and had demanded an increase of at least Rs 10 per litre.
The cabinet approved an Rs 8 increase instead. Of this, Rs 7 per litre will be added to the amount received by farmers, while Rs 1 per litre will go to milk cooperative societies. The allocation links the consumer price revision to both producer payments and the cooperative network through which Nandini milk is handled.
Gowda said farmers currently receive approximately Rs 35 per litre for their milk, in addition to a Rs 5 per litre incentive provided by the state government. Following the new decision, the farmer payment will rise to Rs 42 per litre. With the existing government incentive continuing, the total amount received by farmers will be Rs 47 per litre, according to the minister.
The government has presented the increase as a measure intended to support dairy farmers and strengthen the cooperative system while responding to their demand for higher payments. The cabinet announcement did not indicate any change to the Rs 5 per litre government incentive. The new retail price and the revised farmer payment are scheduled to take effect on November 1.
