Under the revised pricing structure, the price of toned milk in Karnataka will increase from Rs 46 to Rs 54 per litre. Of the Rs 8 hike, Rs 7 will be passed on directly to dairy farmers, while the remaining Rs 1 will be allocated to regional milk unions to meet their operational expenses.

Speaking to reporters on Friday, Agriculture Minister PM Narendraswamy said the decision should not be viewed solely from the consumers’ perspective, as the economic difficulties faced by dairy farmers also need to be considered.

He highlighted that dairy farming remains a crucial source of livelihood for rural households, particularly women, who undertake substantial daily work in caring for livestock. Rising cattle feed prices, increasing production costs and the challenges of maintaining dairy animals have placed considerable financial pressure on farmers.

Narendraswamy said the price revision would ensure better compensation for milk producers and help sustain the state’s dairy sector. He also announced that the responsibility and authority to revise milk prices in the future, based on actual production costs and market conditions, would be handed over to the respective milk unions.

The minister pointed out that Karnataka’s comparatively lower milk prices had attracted traders from neighbouring states, resulting in local milk stocks being purchased for markets outside the state. According to him, the latest revision would help balance consumer availability with fair returns to dairy farmers.

Procurement Price Increased to Rs 42 Per Litre

Along with the retail price revision, the procurement price paid to dairy farmers will increase from Rs 35 to Rs 42 per litre. With the existing Karnataka government incentive of Rs 5 per litre, dairy farmers will effectively receive Rs 47 per litre for their milk. Explaining the reasons behind the decision, Bengaluru Development and Parliamentary Affairs Minister Krish Byre Gowda said drought conditions, the El Niño effect and summer-related challenges had adversely affected milk production across the state.

“About 228 taluks have been affected by drought, and the El Niño effect and summer conditions have also affected milk production. Daily milk procurement has declined by around 10 lakh litres. In this situation, it is our responsibility to support dairy farmers,” Gowda said during a press briefing.

He added that dairy farmers had been demanding an increase in procurement prices and had also staged protests in Bengaluru seeking better remuneration for their produce.

Government Held Discussions with Milk Unions

Gowda said the government had conducted several rounds of discussions with milk unions and concerned ministers before finalizing the price revision.

According to him, dairy farmers had initially demanded an increase of Rs 10 per litre. After examining their demands and assessing the financial implications, the Cabinet decided to approve an Rs 8 per litre increase.

“Farmers were demanding an increase of Rs 10 per litre. After examining their demand and the financial implications, the Cabinet decided to increase the price by Rs 8 per litre, of which Rs 7 will go to farmers and Rs 1 to milk unions,” he said.

The additional Rs 1 allocated to milk unions is intended to help them manage rising expenditure on milk packaging, transportation, fuel and other operational activities.

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