Karnataka’s dairy sector is set for another significant change in milk prices, with the state Cabinet approving a proposed increase of up to ₹8 per litre for Nandini milk. The announcement and implementation, however, are awaiting clearance from the Election Commission due to the Model Code of Conduct in force for the Legislative Council elections.
The proposed revision is expected to provide greater financial support to dairy farmers facing rising costs of feed, fodder, medicines, transportation and other inputs. If the full ₹8 increase is passed on to consumers, the price of toned milk sold in the blue packet could rise to ₹54 per litre from the current ₹46.
Fifth Nandini Milk Price Revision Since 2022
The proposed increase would mark the fifth revision in Nandini milk prices since November 2022. Karnataka has already witnessed multiple price adjustments as the dairy industry has faced increasing production and operational costs.
Milk prices were increased by ₹3 per litre in November 2022, followed by another ₹3 increase in July 2023. Prices were subsequently raised by ₹2 in June 2024 and by ₹4 in March 2025.
In June 2024, consumers received an additional 50 ml of milk for every litre as part of the pricing adjustment. The additional quantity was later withdrawn by the Karnataka Milk Federation (KMF).
The latest proposal comes as dairy farmers and milk unions continue to seek improved returns from milk procurement.
₹6 of Proposed Hike to Reach Milk Producers
Under the proposal approved by the Cabinet, ₹6 from the proposed ₹8 increase would be allocated to milk producers, while the remaining ₹2 would go to milk unions.
The move is intended to strengthen farmer incomes at a time when dairy producers are dealing with higher input costs and difficult agricultural conditions.
A key concern highlighted by the government is the impact of drought on farmers. Crop losses and shortages of fodder have increased the financial burden on dairy farmers, making milk production more expensive.
For dairy farmers, feed and fodder represent major recurring expenses. Higher cattle feed prices, veterinary medicines, transportation expenses and other farm-level costs can significantly affect the profitability of milk production.
Dairy Unions Seek Higher Procurement Prices
Milk unions had reportedly sought an increase of between ₹8 and ₹10 per litre, citing the growing cost of maintaining dairy cattle and transporting milk.
Their demands also included concerns about Karnataka’s milk procurement prices compared with neighbouring states.
According to figures cited by the unions, toned milk is currently procured at around ₹35 per litre in Karnataka. The corresponding procurement prices cited for other states are ₹41.50 in Andhra Pradesh, ₹41.80 in Kerala, ₹41 in Maharashtra and ₹42.20 in Tamil Nadu.
The disparity has added pressure on Karnataka’s dairy sector, with milk producers seeking better returns to maintain production and remain competitive with farmers in neighbouring markets.
Election Commission Clearance Required
Although the Cabinet has approved the proposal, the increase cannot immediately be implemented because of the Model Code of Conduct applicable during the Legislative Council elections.
The government is expected to approach the Election Commission for clearance. Chief Minister DK Shivakumar has been authorised to take the final decision regarding the extent of the increase and its implementation.
Ministers indicated that the revised prices could come into effect from November 1, subject to approval from the Election Commission.
Rising Costs Reshape India’s Dairy Market
The proposed Nandini price increase comes amid broader cost pressures across India’s dairy industry. Dairy cooperatives and milk companies are facing higher expenses related to feed, fodder, packaging, logistics and other operational requirements.
Amul and Mother Dairy also increased milk prices by ₹2 per litre in May, citing rising operational costs and inflation.
For Karnataka’s dairy sector, the Nandini price revision could provide additional support to producers if a larger share of the increase reaches farmers. However, a higher retail price could also increase the cost burden for consumers.
The decision therefore highlights the continuing challenge for dairy cooperatives: balancing affordable milk prices for consumers with sustainable returns for farmers and financially viable milk procurement and processing operations.
With the final implementation dependent on Election Commission clearance, Karnataka’s dairy farmers, milk unions and consumers will now await the government’s final decision on the size and timing of the Nandini milk price increase.
