Bengaluru | The Karnataka Cabinet has approved a proposal to increase the price of Nandini milk by ₹8 per litre, setting the stage for another retail price revision as dairy unions face rising costs of cattle feed, fodder, veterinary care, processing, transportation and packaging.
The increase has not yet been formally implemented. With the Model Code of Conduct in force ahead of Legislative Council elections, the state government is expected to seek clearance from the Election Commission before announcing and implementing the revised prices.
If the full ₹8 increase is passed on to consumers, the price of Nandini toned milk in the blue packet would rise from ₹46 to ₹54 per litre.
₹6 of proposed hike to go to milk producers
Under the proposal, ₹6 of the ₹8 increase would be allocated to milk producers, while the remaining ₹2 would go to dairy unions.
The Cabinet has authorised Chief Minister D K Shivakumar to take the final decision on the quantum and implementation of the increase. Ministers indicated that the revised price could take effect from November 1, subject to the required approvals.
The proposal follows demands from milk unions and producers for an increase of ₹8–10 per litre, citing higher costs across the dairy supply chain.
Feed and fodder costs squeeze dairy farmers
Dairy unions have pointed to rising prices of cattle feed, fodder, veterinary medicines, transportation and plastic packaging as key factors behind the demand.
Also Read: From Two Cows to 25: How Shyma Built a Value-Added Dairy Business in Kerala
Farmers have also reported pressure from drought conditions, which have affected fodder availability and increased livestock-rearing costs.
A state minister said the drought had resulted in crop losses and fodder shortages and that protecting dairy farmers was an important consideration for the government.
Karnataka milk procurement declines
Karnataka Milk Federation (KMF) is also facing a decline in daily milk procurement.
According to the figures cited by dairy unions, KMF’s daily procurement has fallen from around 1.11 crore litres to 1.03 crore litres over three months.
Milk unions have argued that Karnataka’s procurement price is comparatively lower than those in several neighbouring states, potentially affecting farmer incentives to supply milk through the organised cooperative system.
| State | Reported procurement price |
|---|---|
| Karnataka | ₹35/L |
| Maharashtra | ₹41/L |
| Andhra Pradesh | ₹41.5/L |
| Kerala | ₹41.8/L |
| Tamil Nadu | ₹42.2/L |
The figures were cited by Karnataka dairy unions during discussions with the state government.
Fifth Nandini price revision since 2022
If implemented, the proposed increase would mark the fifth revision in Nandini milk prices since November 2022.
- November 2022: ₹3/L increase
- July 2023: ₹3/L increase
- June 2024: ₹2/L increase
- March 2025: ₹4/L increase
- 2026: ₹8/L proposed increase
In June 2024, consumers were also provided an additional 50 ml of milk for every litre purchased as part of a pricing adjustment, although KMF later withdrew the additional-quantity benefit.
Consumer prices remain subject to final approval
The proposed ₹8 increase represents a significant revision for Karnataka’s largest organised dairy brand, but the final consumer price and implementation date remain subject to the government’s decision and the required electoral clearance.
For KMF and its member unions, the proposed revision reflects the challenge of balancing farmer procurement prices, rising production costs, cooperative finances and consumer affordability amid continuing pressure on the dairy sector.
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