Karnataka Chief Minister D.K. Shivakumar has defended the state government’s decision to increase Nandini milk prices by ₹8 per litre from November 1, 2026, stating that the move will provide much-needed financial support to dairy farmers facing rising production costs and drought-related challenges.
Approved unanimously by the state Cabinet on October 29, the revision will allocate ₹7 of the increase directly to milk producers, while the remaining ₹1 will go to dairy cooperatives to meet operational expenses.
The price of Nandini’s basic toned milk is expected to rise from ₹46 to ₹54 per litre, increasing household expenditure on an essential food item. The decision follows protests by milk producers demanding better procurement prices, with farmers and cooperatives initially seeking an increase of at least ₹10 per litre.
The government has maintained that the revision balances farmers’ financial needs with consumers’ interests, although the higher prices are likely to place an additional burden on families already managing rising living costs.
Farmers Seek Relief
Defending the decision, Shivakumar said the government had acted in response to longstanding demands from dairy farmers, who have been struggling with rising input costs and declining milk production. He maintained that the increase was necessary to protect farmers’ livelihoods and ensure that milk production remained financially viable. The Chief Minister also pointed out that Karnataka’s milk prices had remained comparatively low against those in several other states, creating concerns about the movement of milk to markets offering better returns.
Explaining the Cabinet’s decision, Karnataka Minister Krishna Byre Gowda said the government had considered the demands raised by milk producers, dairy cooperatives and legislators across political parties before approving the increase. He stated that the issue had been discussed at multiple Cabinet meetings before the final decision was reached. According to Gowda, farmers had been demanding an increase of ₹10 per litre, but the government settled on ₹8 after considering the financial implications and the interests of consumers.
He also highlighted the pressure on the dairy sector, noting that drought conditions and the effects of El Niño had affected milk production.
Daily milk procurement in the state had reportedly declined by approximately 10 lakh litres, while 228 taluks had been affected by drought. These challenges have increased the pressure on dairy farmers, who must manage animal feed, transportation and other expenses even as milk output declines.
Prices And Production
Under the revised arrangement, the procurement price paid to farmers will increase from ₹35 to ₹42 per litre. The existing state government incentive of ₹5 per litre will continue, taking the total amount farmers receive to ₹47 per litre, including the incentive.
The additional ₹1 allocated to milk unions is intended to cover rising operational expenses, including transportation, fuel and packaging materials. Cooperation Minister Laxman Savadi said the cooperatives had also sought an increase to meet these costs, but the government had restricted the additional allocation to ₹1 per litre after discussions.
The retail price of Nandini’s basic toned milk is expected to rise from ₹46 to ₹54 per litre from November 1. However, the final selling prices of different milk varieties will be determined by the respective milk unions, taking into account factors such as fat and solids-not-fat content. The price revision is also expected to affect other dairy products, including curd, ghee and butter, with the extent of the increase depending on the products and revised rates announced by the relevant unions.
Nandini, marketed by the Karnataka Milk Federation (KMF), is a major dairy brand in the state, making the price revision significant for both milk producers and consumers. The Cabinet’s decision followed protests by dairy farmers seeking better returns for their produce, with representatives of milk cooperatives meeting the Chief Minister and concerned ministers to press their demands.
The government has argued that failing to revise procurement prices could encourage producers to supply milk to neighbouring states where they may receive better returns, potentially affecting local availability. While the latest decision offers higher procurement payments to farmers, it also raises questions about how the additional cost will affect households, particularly those that depend on milk as a regular source of nutrition.
The Logical Indian’s Perspective
The decision to increase Nandini milk prices highlights the difficult balance between protecting agricultural livelihoods and keeping essential food items affordable. Dairy farmers deserve fair compensation for their labour, investment and the risks they face from drought, rising input costs and unpredictable production. At the same time, milk is a daily necessity for millions of households, including families with children, older people and those managing limited budgets.
Any price revision must therefore be accompanied by transparent communication about how much of the increase reaches farmers and how the remaining amount is used to support the dairy supply chain. The government and dairy cooperatives should also explore longer-term measures, such as improving access to affordable cattle feed, strengthening veterinary services, supporting water conservation and helping farmers manage climate-related risks. Such measures could reduce production costs without placing the entire burden of supporting the dairy sector on consumers.
Also Read: Bhutan Glacial Lake Outburst Flood: Thousands Moved To Safety In Bengal, Assam On Alert
VIDEO | Karnataka CM DK Shivakumar defends milk price hike, says move will benefit farmers. The Karnataka Cabinet on Thursday decided to increase Nandini milk prices by Rs 8 per litre from November 1. Of the increase, Rs 7 per litre will go to milk producers and Re 1 to cooperatives, Minister Krishna Byre Gowda said. He said the decision was taken unanimously in response to demands from milk producers and cooperatives, amid protests by farmers seeking better prices.
— Press Trust of India (@PTI_News) October 29, 2026
