Karnataka Hikes Milk Prices by ₹8 Per Litre as Drought Hits Dairy Farmers

Karnataka Chief Minister D K Shivakumar on Saturday defended the state government's decision to increase milk prices by ₹8 per litre, saying the revision was necessary to protect dairy farmers amid severe drought, rising production costs and declining milk procurement.

The revised prices will come into effect from November 1 following the state Cabinet's approval on Thursday. Of the total increase, ₹7 per litre will go directly to farmers, while the remaining Re 1 will be allocated to milk unions to meet operational expenses.

Shivakumar said milk producers had initially sought an increase of ₹12 per litre. He attributed the decline in production to drought conditions, which have reduced fodder availability and increased the cost of feeding cattle. Higher labour, fuel and packaging expenses have also added to the financial burden on dairy farmers and cooperative institutions.

According to figures cited by the Karnataka Milk Producers Association, daily milk procurement declined from around 1.11 crore litres to 1.03 crore litres over three months until September. The state government separately cited a fall of approximately 10 lakh litres in daily procurement due to drought.

Under the revised rates, the procurement price paid to farmers will rise from ₹35 to ₹42 per litre. Including the existing government incentive of ₹5 per litre, farmers will receive ₹47 per litre. Shivakumar said a farmer supplying 10 litres daily would earn an additional ₹2,100 per month.

The revision is expected to generate an additional annual income of ₹1,850 crore to ₹2,100 crore for dairy farming families, according to the Chief Minister. Karnataka has around 28.84 lakh dairy farmers, of whom 67 per cent of Karnataka Milk Federation members are small and marginal farmers, he said.

Shivakumar also clarified that the government had intervened only in milk prices, while decisions on curd prices rested with the Karnataka Milk Federation (KMF). Nandini toned milk will cost ₹54 per litre after the revision, while Nandini Shubham milk, with 4.5 per cent fat, will cost ₹60 per litre.

He said the price revision was intended to support farmers while maintaining milk supplies to consumers.