Milk producers in Karnataka have demanded an ₹8 per litre increase in milk prices, citing drought, fodder shortages, rising input costs and declining milk procurement. The demand could lead to higher prices for Nandini milk if it is approved, although no ₹8/litre retail-price increase had been approved at the time of the latest reports.
Members of the Karnataka Milk Producers Association submitted a memorandum to the Karnataka Milk Federation (KMF) and held discussions with KMF officials seeking the increase with immediate effect.
Association president P. Nagaraj said severe drought conditions had reduced fodder availability, affecting both milk production and procurement. According to the association, KMF’s daily milk procurement has fallen from around 1.11 crore litres three months ago to 1.03 crore litres currently.
The producers also reported a decline in milk quality and total solids, including fat content, which they said is affecting the quality of milk and curd.
The association pointed to rising operating costs as another reason for the requested increase. It said milk packaging costs have risen by 40% since the last milk-price hike in April 2025, with packaging currently costing around 70 paise per milk packet.
Processing costs have also increased, while lower conversion rates for milk into powder and other dairy products have added to pressure on the sector, according to the producers.
The association also compared Nandini milk prices with those in other states. Nagaraj said a litre of milk costs around ₹62 in Delhi, ₹59 in Maharashtra and ₹62 in Rajasthan, and argued that Karnataka’s milk prices remain comparatively low. These figures were presented by the association as part of its case for a price revision.
KMF officials acknowledged that the demand for higher milk prices has been pending for some time and that drought conditions have created difficulties for the dairy sector. However, an unnamed KMF official said an ₹8 increase could be challenging, adding that the final decision would require approval from the State government.
The producers have given KMF and the State government three days to respond. They have warned of a statewide protest on September 22 if their demand is not addressed.
The demand comes ahead of the festival season, when milk and dairy-product consumption typically becomes an important part of household and food-service demand. Any approved increase in retail milk prices could also have implications for products that use milk as a raw material.
Karnataka’s dairy sector has already faced pressure from tighter milk availability and higher costs. In July, KMF had increased the prices of Nandini ghee and butter, citing an acute shortage of milk fat and supply-demand pressures.
For the immediate issue, however, the ₹8/litre figure remains a producer demand rather than a confirmed retail-price increase. The final impact on Nandini milk prices will depend on the decision of KMF and the State government.
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Source: Dairynews7x7 19 Sep, 2026 Read full story here
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