Karnataka Raises Milk Payments, With Consumers Facing Higher Prices

A litre of milk will bring Karnataka dairy farmers Rs 7 more from November 1, while milk unions receive the remaining Re 1 of the Rs 8 increase. The Cabinet approved the change on Thursday, after farmers protested for better returns. The state says drought, higher costs and falling milk collection make support urgent. ^1,2

The Rs 8 increase is split between milk suppliers and the cooperatives that handle it. Minister Krishna Byre Gowda said the farmer payment will rise from Rs 35 to Rs 42 per litre. The existing state incentive of Rs 5 continues, bringing the total to Rs 47. Unions will get Re 1 to help cover costs such as packaging and transport. The Cabinet settled on Rs 8 after farmers sought at least Rs 10. ^1,2

The Rs 47 total matters to farming households that rely on dairy income, especially as drought and rising costs squeeze their work. Gowda said daily milk collection has fallen by around 10 lakh litres, with drought affecting 228 taluks. The cooperative system links local milk producers with consumers through Nandini, Karnataka’s dairy brand. But households will also feel the change: the retail price is expected to rise from Rs 46 to around Rs 54 per litre. ^1,14

That expected Rs 54 is not yet a fixed price for every variety. Gowda said milk unions will decide final selling prices based on fat and solids-not-fat content. The Rs 1 share is meant to help unions cover operating costs, while most of the increase goes to producers. Consumers can expect new rates from November 1, when the new payments to farmers take effect. ¹