Bengaluru: Representatives of Karnataka’s 16 district milk unions have urged the state government to raise the retail price of milk by ₹8 per litre and increase the producer incentive from ₹5 to ₹8 per litre, warning that dairy farmers could stage a “Vidhana Soudha Chalo” march if their demands are not addressed within three days.
The demand was announced at a joint press conference in Bengaluru attended by representatives of all 16 district milk producers’ unions, according to Udayavani. The unions have called for an emergency Cabinet meeting to consider the proposed changes.
Unions seek higher consumer price and farmer incentive
The milk unions are seeking an ₹8-per-litre increase in the consumer price of liquid milk. Separately, they want the government-funded incentive paid to milk producers to be increased by ₹3 per litre, from ₹5 to ₹8.
The proposals would affect both the price paid by consumers and the financial support provided to milk producers through Karnataka’s cooperative dairy system.
The union representatives said thousands of farmers could participate in the proposed march to the state legislature if the demands are not accepted.
Milk procurement declines amid rising demand
According to the union representatives, daily milk procurement across the Karnataka Milk Federation (KMF) network has declined from a peak of around 11.1 million litres to 10.5–10.6 million litres.
They said demand for liquid milk and value-added dairy products continues to grow even as milk collection has weakened.
The representatives attributed the decline in procurement to difficult conditions for dairy farmers, including inadequate rainfall, reduced water availability and higher feed costs.
Drought and input costs add pressure
The unions claimed Karnataka has experienced an estimated 70% rainfall deficit, contributing to shortages of both dry and green fodder in several areas.
They said prices of key cattle-feed ingredients such as maize, bran and molasses have increased by around 25%. Veterinary medicines, industrial processing inputs and aseptic packaging films have, according to the representatives, become approximately 30% more expensive.
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Milk unions are also facing higher expenditure on fuel, LPG and refrigerated transportation. The representatives linked part of the increase in logistics costs to geopolitical tensions in the Middle East.
They also cited the implementation of salary revisions under the Seventh Pay Commission as an additional factor increasing operating costs.
Unions highlight price gap with neighbouring states
The union representatives claimed that producer prices in Karnataka are around ₹10 per litre lower than those offered in some neighbouring southern states, particularly Tamil Nadu.
They said the price differential has encouraged some farmers to sell milk to buyers outside the cooperative network, including buyers offering immediate cash payments. According to the unions, this has contributed to lower milk availability for cooperative procurement.
The representatives said they have held discussions with state authorities for around eight months but have not reached an agreement on their demands.
“Vidhana Soudha Chalo” warning
The unions have given the state government three days to consider the proposed price and incentive revisions. If an emergency Cabinet meeting does not approve the measures, they have threatened to mobilise dairy farmers for a “Vidhana Soudha Chalo” march in Bengaluru.
The next step will depend on the state government’s response to the unions’ demands and whether an emergency Cabinet meeting is convened.
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