Nandini milk parlor which sells Bengaluru Dairy products at Sumanahalli in Bengaluru, Milk Price hiked by two rupees by Karnataka Government , also increased 50ml in the packet.
| Photo Credit: SUDHAKARA JAIN

Amid demand from farmers, the price of Nandini milk marketed by Karnataka Milk Federation (KMF) will be hiked as production cost has increased, Animal Husbandry Minister K. Venkatesh said on Wednesday (March 5, 2025). He, however, did not indicate the time or the quantum of price hike.

Responding to question on milk price, posed by BJP member Hemalatha Nayak, the Minister told Legislative Council that milk farmers have been demanding a hike of ₹10 per litre, and that the decision would be taken after a meeting with Chief Minister Siddaramaiah. “The quantum of hike is not yet decided.”

Currently, a litre of Nandini milk is sold at ₹44 per litre after the State Government allowed a ₹3 per litre hike in August 2023, and despite the hike the KMF had then said the cost of milk in Karnataka was cheaper than any other states.

Citing the high production cost, the Minister also justified another round of hike, and said: “The famers’ demand is also fair. We will protect the interest of both farmers and consumers.” 

Incentive dues

To a question from Congress member Umashree and BJP member M.G. Mule on the pending dues towards the financial incentive given to dairy farmers, Mr. Venkatesh said that insufficient allocation and increased milk production had led to pending dues that now stood at ₹656 crores towards 90.04 lakh beneficiaries. An incentive of ₹5 per litre is given by the government to encourage milk farmers.

Mr. Venkatesh told the house that the pending dues of ₹613.5 crores for five months (October 2024-February 2025) to 81 lakh farmers from general population, ₹15.29 crores for two months (January and February 2025) to 52,467 scheduled castes farmers and dues of ₹24.20 crores for four months (November 2024- February 2025) to 35,000 scheduled tribes farmers remain to be paid. Between April 2023 and February 2025, government has paid ₹2,661 crores..

Inadequate allocation, pending dues

Stating that the pending dues would be cleared after the approval of Finance Department, Mr. Venkatesh said: “The dues have accumulated since 2019-2020 since adequate allocation was not made in budgets over the years. When we assumed power, the BJP government had left dues of ₹700 crores. Because we are clearing dues of previous years from the current allocation, dues are still pending.”

Another reason for pending dues, the Minister said was increasing production of milk against a lower allocation in the Budget. He said that the average daily procurement of milk that was 75.96 lakh litres in 2019-2020 has gradually increased to reach an average of 90 to 95 lakh litres in 2024-2025.