Karnataka Cabinet Announces Rs 8 Per Litre Hike in Milk Prices Effective November 1

BENGALURU — The Karnataka Cabinet on Thursday announced a decision to increase milk prices by Rs 8 per litre, according to Minister Krishna Byre Gowda. The revised pricing structure will be implemented across the state starting November 1.

Addressing reporters following the Cabinet meeting, Minister Gowda explained the breakdown of the price revision. Out of the total Rs 8 increase, Rs 7 will be directed to milk-producing farmers, while Re 1 will go to the milk cooperatives. The decision follows discussions held across two or three Cabinet sessions under the chairmanship of the chief minister.

The policy change comes in response to mounting pressure from various stakeholders. Gowda noted that members of all parties in the Legislative Council had called for support measures given the ongoing crisis faced by farmers. Additionally, milk producers had staged street protests, and cooperatives had pressed the government for a price increase.

Representative groups of farmers and cooperatives had initially met with the chief minister, the animal husbandry minister, and the cooperation minister to demand a minimum increase of Rs 10 per litre. However, the Cabinet concluded that a Rs 10 hike was not feasible, settling instead on the unanimous decision of Rs 8 per litre.

With this revision, the base price paid directly to farmers will increase from approximately Rs 35 per litre to Rs 42 per litre. Furthermore, the state government's existing incentive of Rs 5 per litre will continue. Combined with the incentive, farmers will receive a total of Rs 47 per litre, a move expected to benefit lakhs of farming families across Karnataka.

"This price revision highlights the economic pressures faced by primary producers in the agricultural and dairy sectors. By balancing the demands of protesting farmers with cooperative margins, the Karnataka government has intervened to sustain rural livelihoods. For businesses operating in the dairy and consumer goods sectors, input cost increases like this will inevitably impact supply chain economics and retail pricing strategies going forward." — Dr. Shishir Gupta, Founder & CEO, StartupLanes