Milk and Curd Prices in Karnataka to Rise by ₹4/Litre from April 1 — Sharpest Hike in Five Years
Bengaluru, March 27, 2025 – From April 1, 2025, Karnataka households will face a notable hike in the price of milk and curd, with a uniform ₹4 increase per litre across product categories. The move, cleared by the state cabinet on March 26, aims to provide financial relief to dairy farmers grappling with soaring production costs.
Announcing the hike, Animal Husbandry and Sericulture Minister K Venkatesh emphasized that “the entire increase will go directly to farmers,” positioning the measure as a pro-farmer intervention rather than a revenue-generating step for cooperatives or the government.
Why the Hike Now? A Perfect Storm of Rising Costs
The decision follows a meeting held on March 23, chaired by Chief Minister Siddaramaiah, in which representatives from the Karnataka Cooperative Milk Producers’ Federation (KMF) and various district milk unions lobbied for a price increase. While cooperatives requested a share in the hike to offset their own rising operational and maintenance costs, the government overruled, directing the entire benefit to producers.
Backing the rationale, Cooperation Minister K N Rajanna cited mounting economic pressures in the dairy sector:
“A milch cow that cost ₹40,000 five years ago now commands ₹70,000 to ₹80,000. Feed and labour expenses have nearly doubled. This hike is vital for sustaining milk production in the state.”
Rajanna admitted that the decision might spark consumer dissatisfaction but argued that Karnataka’s post-hike prices would still be more affordable than those in neighbouring states like Kerala (₹52/litre), Gujarat (₹53/litre), Maharashtra (₹52/litre), and Andhra Pradesh (₹60/litre).
What Will Milk and Curd Cost from April 1?
The revised retail prices are as follows:
- Toned milk (blue packet): ₹46/litre
- Homogenised toned milk: ₹47/litre
- Cow milk (green packet): ₹50/litre
- Special milk (orange packet): ₹50/litre
- Curd: ₹54/litre
These prices apply to products under KMF’s Nandini brand, which supplies a significant share of milk in the state and enjoys wide consumer trust for its affordability and quality.
A Look Back: Milk Prices in Karnataka, 2020–2025
The ₹4 hike represents the largest single-year increase in the last five years, driven by a combination of inflationary input costs, rural distress, and farmer mobilization.
Key Takeaways:
- Net ₹8 increase over five years.
- Rollback precedent in 2023 highlights political sensitivity.
- 2025 hike is the steepest yet, signaling mounting urgency within the dairy sector.
Political Pushback: BJP Slams the Move
The Opposition BJP wasted no time in criticising the Congress-led government’s decision. State president B Y Vijayendra called the price hike “daylight robbery,” accusing the government of squeezing the common man with back-to-back hikes on essential goods and public utilities.
“Since coming to power, the Congress has hiked electricity rates, bus fares, and now milk. This ₹4 hike is yet another burden on families already struggling with inflation,” Vijayendra posted on X.
Balancing the Dairy Equation: Farmers vs. Consumers
The government’s stance reflects a broader policy challenge: how to support farmer incomes in a cost-sensitive sector while keeping food inflation in check. Karnataka is among the top five milk-producing states in India, and the dairy sector is a vital source of income for millions of rural households, most of whom operate on slim margins.
The hike, therefore, is being framed as an economic lifeline for producers, even as it risks stoking consumer discontent ahead of local elections.
As no rollback or subsidy relief has been proposed so far, the state now faces a tricky road ahead—ensuring dairy viability without eroding public goodwill.