Karnataka's Nandini Milk Prices Set to Increase by ₹5 per Liter Post-March 7 Budget

Karnataka, milk consumers are preparing for a significant price adjustment as the Karnataka Milk Federation (KMF) plans to increase the cost of Nandini milk by ₹5 per liter. This change is scheduled to take effect following the presentation of the state budget on March 7, 2025. Additionally, the quantity of milk per packet will be standardized from the current 1,050 milliliters to 1,000 milliliters, effectively reversing the previous increment introduced last year. If this proposal is implemented, the price of Nandini toned milk will rise from ₹44 to ₹47 per liter, marking the most substantial hike in the past three years. In 2022, KMF increased milk prices by ₹3 per liter, and in 2024, by ₹2 per liter, while also adding an extra 50 milliliters per packet to offset the impact on consumers. The current adjustment removes that additional quantity and raises the price, leading to a more noticeable cost increase for consumers. This proposed price hike has sparked criticism from opposition leaders. Chalavadi Narayanaswamy, the Leader of Opposition in the Karnataka Legislative Council, attributed the increase to governmental 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." Narayanaswamy further accused the administration of failing to deliver development and burdening citizens with repeated price hikes. He also questioned whether dairy farmers would benefit from the increase, expressing skepticism about the government's commitment to passing the additional revenue to the producers. In defense of the price adjustment, KMF Managing Director B. Shivaswamy cited a decline in milk procurement as a primary reason. He noted that earlier, KMF was procuring between 8.5 to 8.9 million liters of milk daily, with peaks reaching up to 9.9 million liters. Currently, procurement has decreased to approximately 7.9 to 8.1 million liters per day. Shivaswamy emphasized that even with the revised pricing, Nandini milk would remain more affordable than several other brands available within Karnataka and in neighboring states. The impending increase in milk prices adds to a series of rising costs for essential goods and services in Karnataka. Coffee powder prices are expected to surge by ₹200 per kilogram by March. Public transportation fares for Bangalore Metropolitan Transport Corporation (BMTC) buses and Namma Metro have already seen hikes. Moreover, the state government is contemplating an increase in water tariffs, and electricity supply companies (Escoms) have submitted proposals for a 67 paise per unit rise in power tariffs. These cumulative increases are poised to impact household budgets significantly, especially for middle and lower-income families. Milk, being a staple in many Indian households, plays a crucial role in daily nutrition. Therefore, a rise in its price can have a cascading effect on the cost of other dairy products and related food items. The broader context of this price hike can be linked to various factors affecting the dairy industry in India. Escalating input costs, such as cattle feed and maintenance, have been a concern for dairy farmers. Additionally, climatic challenges and diseases affecting livestock have contributed to fluctuations in milk production. These issues, combined with increasing operational costs, have necessitated revisions in milk pricing to ensure the sustainability of dairy farming and related industries. As the state budget announcement approaches, consumers, policymakers, and industry stakeholders will be closely monitoring the situation. The decisions made will not only influence the economic landscape of Karnataka but also set precedents for how essential commodities are priced and managed in the face of evolving challenges.