Members of the Karnataka Milk Federation (KMF) have sought an increase of Rs 8-10 per litre in milk prices, citing rising cattle feed, fodder, veterinary and operational costs faced by dairy farmers and milk cooperatives.
A delegation representing milk unions met Karnataka Chief Minister DK Shivakumar on Tuesday to discuss the demand. The meeting came shortly after union members submitted a memorandum to KMF seeking an increase in milk prices.
During the meeting, the Chief Minister asked the delegation to provide a detailed report supporting the proposed price increase. The report is expected to include information on the rise in cattle feed costs, milk procurement expenses and processing costs.
The delegation has also been asked to provide details regarding the volume of milk solids in Nandini milk and compare the figures with milk products offered by producers in other states. The government has sought additional information on milk sales and comparative data covering Nandini and dairy products in other markets.
After reviewing the information, Shivakumar said the government would examine the matter.
The demand for a price increase has been linked to the growing cost burden on dairy farmers. BAMUL President DK Suresh, who spoke on behalf of the milk unions and the delegation, said several components of dairy production have become more expensive over the years.
According to Suresh, expenses related to operations, fodder and veterinary care have increased, placing additional pressure on farmers and dairy cooperatives. The impact of drought has further affected the availability of fodder and milk procurement in Karnataka.
Dairy farmers are consequently facing higher production costs while milk prices have not increased at the same pace, according to the representatives seeking the revision.
Key Factors Behind the Price-Hike Demand
| Factor | Impact on dairy sector |
|---|---|
| Cattle feed costs | Increased cost of maintaining dairy animals |
| Fodder | Drought has affected availability |
| Veterinary care | Higher expenses for animal health |
| Milk procurement | Rising costs for cooperatives |
| Processing | Additional operational expenses |
| Dairy operations | Increased overall production costs |
The milk unions have argued that farmers require better returns to sustain milk production. They also pointed to price increases implemented by cooperative societies and private dairies in Karnataka and other states.
Suresh said milk prices had been kept comparatively stable in the interest of consumers, despite increasing costs across the dairy supply chain. The unions now want the government to consider the financial difficulties faced by dairy farmers and examine whether a price revision is necessary.
The proposed Rs 8-10 increase could have implications for consumers if approved, as higher procurement and processing costs may eventually be reflected in retail prices. However, the government has not announced a decision on the proposed increase and has instead requested detailed financial and market data before considering the demand.
The comparison with other states is expected to help authorities assess Karnataka’s milk prices, procurement costs and product composition against broader industry conditions.
Nandini, the dairy brand operated through Karnataka’s cooperative milk network, plays an important role in the state’s milk market. Any decision regarding prices could therefore affect farmers, cooperatives, retailers and consumers.
For now, the price-hike proposal remains under consideration. The detailed report requested by the Chief Minister will provide the government with additional information on production costs, milk procurement, processing and market prices before any decision is taken.
