Karnataka Chief Minister D.K. Shivakumar has said that a final decision on a proposed increase in milk prices will be taken after discussions within the state Cabinet. The issue has gained attention after milk unions in Karnataka sought a hike of ₹12 per litre, citing financial pressures and concerns raised by dairy farmers.
Speaking on Saturday, Shivakumar said the proposed increase would include an allocation of ₹2 per litre for milk-producing societies. The government is expected to examine milk prices in other southern states, including Tamil Nadu, Telangana and Andhra Pradesh, before reaching a decision.
Milk Unions Seek ₹12 Per Litre Increase
According to the proposal discussed with the state government, milk unions have requested an increase of ₹12 per litre. Of this amount, ₹2 would be allocated to societies.
The demand comes amid concerns over the financial position of milk unions and the returns received by dairy farmers. Shivakumar said the unions have been experiencing losses under the existing pricing structure and that farmers have expressed dissatisfaction with current milk prices.
More than 50,000 milk farmers have reportedly sought an increase in prices, highlighting the scale of the demand from the state’s dairy sector.
Meetings With Dairy Stakeholders
The Chief Minister held a meeting with heads of milk unions, officials from the Karnataka Milk Federation (KMF) and BAMUL Chairman D.K. Suresh on Saturday to discuss the proposed price revision.
The government had also held discussions earlier in the week with milk-producing unions and dairy farmers regarding the issue.
These meetings are intended to gather inputs from different stakeholders before the Cabinet considers the proposal. The discussions involve the financial position of milk unions, farmer returns and the price structure prevailing in other states.
Comparison With Other States
Before making a decision, Karnataka plans to examine milk prices in neighbouring and other southern states. Tamil Nadu, Telangana and Andhra Pradesh have been specifically mentioned as markets whose milk prices will be considered.
Such comparisons can provide policymakers with information about regional pricing structures and the relative position of Karnataka’s dairy farmers and milk unions.
| Key Detail | Information |
|---|---|
| State | Karnataka |
| Proposed increase | ₹12 per litre |
| Proposed allocation to societies | ₹2 per litre |
| Decision-making body | Karnataka Cabinet |
| Chief Minister | D.K. Shivakumar |
| Federation | Karnataka Milk Federation (KMF) |
| Other states being considered | Tamil Nadu, Telangana, Andhra Pradesh |
| Farmers seeking hike | More than 50,000 |
Impact on Farmers and Dairy Consumers
A change in procurement or milk prices could affect several participants across Karnataka’s dairy supply chain. Higher prices paid to producers could improve returns for dairy farmers, while any increase passed through to consumers could influence retail milk prices.
The final structure of the proposed increase will therefore be important. The government will need to consider the financial requirements of milk unions and farmers alongside the potential effect on consumers.
Karnataka has a large organised dairy network, with KMF and its regional milk unions playing an important role in milk procurement, processing and distribution. Changes to the pricing structure could therefore have implications across the state’s dairy ecosystem.
Cabinet Decision Awaited
The proposed ₹12-per-litre increase has not yet been approved. The Chief Minister has made it clear that the final decision will follow a Cabinet discussion and consideration of milk prices in other states.
The government’s consultations with milk unions, farmers and dairy officials are expected to inform that discussion.
For now, dairy farmers and milk unions are awaiting the Cabinet’s decision, while consumers and other stakeholders will be watching to see whether the proposed price revision is approved and how any increase is ultimately structured.
