HD Revanna questions the impact of higher milk and curd prices on consumer demand and Nandini’s competitiveness.
HASSAN: Hassan Milk Union president and MLA HD Revanna has opposed the proposed increase in milk and curd prices, warning that the revision could affect consumer demand and result in an estimated monthly loss of ₹8.5 crore for the cooperative.
Speaking at the union office in Hassan on Wednesday, Revanna said the union, which operates across Hassan, Chikkamagaluru and Kodagu districts, could face financial pressure following the proposed price changes. He urged the state government to clarify how the union would manage the potential losses.
Concerns over consumer demand and market share
Revanna said the union handles substantial daily milk volumes, including approximately 5 lakh litres used for manufacturing dairy products.
He cautioned that a sudden price increase of ₹8–₹12 per litre could discourage consumers from purchasing Nandini products and potentially reduce the brand’s market share.
Also Read: Nandini Raises Ghee, Butter and Paneer Prices in Karnataka; 1-Litre Ghee Sachet Now Costs ₹850
Highlighting competition from private dairy brands, he compared the prices of selected products. According to him, Amul UHT milk is priced at ₹70 per litre against ₹72 for Nandini milk, while Amul ghee costs ₹720 per kg compared with ₹860 for Nandini ghee.
Questioning the impact of these price differences on consumer preference, Revanna said higher retail prices could make it more difficult for Nandini products to compete in the market.
Seeks moderation in curd price revision
Revanna also called for a reconsideration of the proposed curd price increase. He said an increase of ₹10 per litre would be more reasonable, while a ₹14 per litre revision could be difficult for consumers to absorb.
He urged the state government to consider the interests of all stakeholders, including milk producers, consumers and dairy cooperatives.
Balancing producer returns and consumer affordability
The remarks highlight the pricing challenge faced by dairy cooperatives: maintaining remunerative returns for milk producers while keeping retail products competitive.
Any significant price revision can influence consumer purchasing decisions, particularly in markets where cooperative brands compete with private dairy companies.
The financial impact on the Hassan Milk Union will depend on the final pricing structure, changes in consumer demand and the extent to which higher prices affect sales volumes.
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