BENGALURU: A demand to increase milk prices in Karnataka has emerged amid rising production costs, fodder shortages and growing financial pressure on dairy farmers. Congress MLC S Ravi on Thursday sought an increase of Rs 12 to Rs 15 per litre in milk prices, arguing that farmers are struggling to cover the cost of producing milk.
Speaking during a discussion on drought and farmers’ issues, Ravi said the cost of producing one litre of milk had increased to Rs 42.20. However, milk producers were receiving around Rs 35 per litre through cooperative societies. According to his calculation, dairy farmers were therefore facing a loss of at least Rs 7.20 on every litre of milk produced.
Ravi highlighted the difference between the price received by farmers and the retail price paid by consumers. Basic toned Nandini milk is currently priced at Rs 46 per litre, while private milk brands in Karnataka charge as much as Rs 56 per litre.
He argued that the gap between production costs and payments received by farmers needed to be addressed to ensure the sustainability of dairy farming in the state. According to him, increasing input costs have placed additional pressure on milk producers, particularly those operating under drought conditions.
Fodder shortage adds to farmers’ burden
The MLC also highlighted the shortage of fodder as another major challenge facing dairy farmers. With drought affecting the availability of natural water sources and fodder, farmers are facing additional expenses to maintain their cattle and sustain milk production.
Ravi said farmers also have to bear costs related to cattle insurance and vaccination. These expenses, combined with higher production costs, have increased the financial burden on dairy households.
He also raised the issue of decision-making authority within the Karnataka Milk Federation (KMF). Ravi said KMF could independently decide on milk price increases without seeking approval from the State Government. However, the practice of consulting the government has continued because of the support extended by the state to the federation.
He suggested passing a resolution to discontinue this practice and allow KMF to independently determine milk prices based on market and production conditions.
| Milk-related figure | Amount |
|---|---|
| Estimated production cost per litre | Rs 42.20 |
| Payment to milk producers | Rs 35 |
| Estimated farmer loss | Rs 7.20 per litre |
| Nandini toned milk price | Rs 46 per litre |
| Private milk prices | Up to Rs 56 per litre |
| Proposed price increase | Rs 12–15 per litre |
Funds issue sparks political exchange
The discussion also witnessed a separate exchange between members of the ruling Congress and BJP over the allocation of drought-related funds to Karnataka.
Municipal Administration Minister HC Balakrishna alleged that Karnataka was not receiving what he described as its fair share of funds from the Centre. He also criticised BJP MPs from Karnataka for not raising the issue strongly with the Union Government.
BJP member S Arun countered that the Centre provides funds through the National Disaster Response Fund (NDRF) for drought situations. He alleged that Karnataka’s confrontation with the Union Government had affected the state’s ability to receive its due assistance.
Arun said the State Government should have taken an all-party delegation to Delhi to seek additional assistance.
Responding to the criticism, Balakrishna said Chief Minister Siddaramaiah had already led a delegation to Delhi, but the effort had not produced the desired result. He added that the state had approached the Supreme Court to seek what it considers its rightful share of funds.
The discussion brought both dairy-sector concerns and the wider financial challenges linked to drought into focus, with milk production costs and farmer incomes emerging as key issues for Karnataka’s dairy industry.
