The Karnataka Milk Federation (KMF) has once again unsettled consumers with a steep price hike, announcing an increase of ₹90 per litre on its popular Nandini Ghee. The decision has raised eyebrows across households and the dairy trade, coming just weeks after the federation had reduced prices following a government-mandated GST cut.
In early October, KMF had passed on the benefits of the Union government’s decision to lower GST on dairy products from 12% to 5%, slashing ghee prices by ₹40 per litre in what it termed a “consumer-friendly initiative.” However, the federation has now reversed this stance, attributing the latest price escalation to mounting procurement expenses and surging market demand.
Under the revised structure, a one-litre pack of Nandini Ghee will retail at ₹700, up from ₹610 earlier. Smaller packs have also seen proportionate adjustments. The 50ml now costs ₹47, 100ml ₹75, 200ml between ₹155 and ₹165, and 500ml between ₹350 and ₹360. The new rates came into effect on Tuesday, as confirmed by KMF officials.
A senior KMF representative defended the move, explaining that global volatility in dairy fat prices, coupled with seasonal domestic demand, has driven up costs. “We are compelled to revise the prices due to the sharp increase in raw material costs and global ghee rates. Even after the revision, Nandini Ghee continues to remain competitively priced within the market,” the official stated.
Consumer advocacy groups, however, have criticised the timing of the hike, calling it an “untimely burden” on households preparing for the Deepavali season. “Many middle-class families rely on Nandini products. Raising prices during a festive period is both insensitive and exploitative,” remarked a member of the Karnataka Consumer Rights Forum.
Industry observers note that the increase underscores a growing disconnect between government policy and cooperative pricing dynamics. The Centre’s reduction of GST aimed to make dairy products more affordable, yet KMF’s counteraction signals persistent pressure from inflation and raw material volatility.
With this development, Nandini Ghee, once celebrated for its combination of purity and affordability, now mirrors a broader trend of price inflation across India’s dairy sector. Analysts warn that unless procurement costs stabilise, further price revisions in milk and other dairy derivatives may follow in the coming months.
