Milk demand from Bengaluru’s hotel sector has dropped sharply, with orders for Nandini milk declining by around 25%, impacting sales of the Karnataka Milk Federation (KMF) in one of its key urban markets. The reduction is linked to operational challenges faced by hotels, particularly due to the ongoing LPG shortage, which has forced many establishments to scale down operations or temporarily shut, thereby lowering their milk consumption.
Earlier, hotels in the city collectively procured about 2.5 lakh litres of milk per day, which has now fallen to around 2 lakh litres, marking a decline of nearly 50,000 litres daily. This drop has directly affected KMF’s demand dynamics, especially in Bengaluru where the federation sells a significant share of its daily milk supply. With KMF procuring close to 1 crore litres of milk per day, fluctuations in urban demand are creating supply-demand imbalances and operational pressure.
The decline highlights the strong dependence of dairy consumption on the HoReCa (Hotels, Restaurants, Catering) segment, which acts as a major bulk buyer. Industry observers warn that continued disruption in this channel could impact milk sales, inventory management and farmer payouts, as procurement remains steady while demand weakens. The situation underscores how external factors like energy shortages can quickly ripple through the dairy value chain, affecting both urban consumption and rural livelihoods.
Source: Dairynews7x7 23 March, 2026 Read full story here
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