Bengaluru Nandini milk price hiked by ₹8: Will your daily cup of tea or coffee cost more? What hotel association says

The Karnataka government hiked the price of Nandini milk by ₹8 per litre across all categories, and the price of Nandini curd by ₹14 per kg. The Karnataka Cabinet gave its nod to the price hike on Thursday (October 29). The revised milk prices came into effect from November 1.

After the revision, Nandini toned milk will cost ₹54 per litre. Similarly, Nandini Shubham milk, with 4.5 per cent fat content, will cost ₹60 per litre, below the average price of ₹62.80 in 10 other states, Karnataka Chief Minister DK Shivakumar said.

The revised prices, announced by Karnataka Milk Federation (KMF) on Friday, include an increase in the price of a 500-gram curd pouch from ₹28 to ₹34 (by ₹6) and a one-kg pouch from ₹54 to ₹68 (by ₹14).

Will your daily cup of tea or coffee cost more?

The Bengaluru Hotels Association reportedly warned that the hike in milk prices could make price revisions unavoidable, particularly for items that require large quantities of milk, including coffee, tea, snacks and meals.

The association said in a press release, “If the increase had been limited to ₹2-3 per litre, there would have been no need to increase the prices of coffee, tea or snacks in hotels. The steep hike will make it necessary to increase the prices of all food and beverages made using milk.”

What does this mean for consumers?

According to NDTV, the hike in Nandini milk price does not directly mean that every hotel or restaurant in the state will increase its menu prices from November 1.

Individual businesses will decide whether to revise rates based on their operating costs, milk consumption and profit margins.

With milk prices increasing alongside the cost of other essential ingredients, Bengaluru residents could see a sharp rise in bills at their favourite cafes, bakeries and eateries in the coming weeks, the report added.

Meanwhile, PC Rao, honorary president of the Bangalore Hotels Association, called the curd price hike unjustified and said it could adversely affect the hotel industry and ordinary consumers.

Karnataka CM Shivakumar defends milk price hike

Amid criticism, Karnataka Chief Minister D K Shivakumar defended the milk price hike, saying on Saturday that it was necessary to safeguard farmers’ interests, particularly when the state was reeling under severe drought.

DK Shivakumar was quoted by PTI as saying that the Karnataka Cabinet had decided to increase milk prices by ₹8 per litre, against a demand for a ₹12 hike. He said milk prices had not been revised for several years, prompting the government to take the decision.

Asked about the ₹14 per kg increase in the price of Nandini curd, he said the decision on curd prices rested with the Karnataka Milk Federation (KMF).

“We have intervened only in the price of milk. As far as the other factors are concerned, if the fat content is higher, a corresponding rate is fixed, and the price goes up accordingly,” he said.

CM: ‘Primary reasons for the unavoidable revision’

CM Shivakumar said rising fodder and labour costs, increased fuel and packaging expenses, and a decline in daily milk procurement due to drought were the primary reasons for the unavoidable revision.

Of the ₹8 increase per litre, ₹7 will go directly to farmers, raising the procurement price from ₹35 to ₹42 per litre. The remaining Re 1 will go to milk unions towards operational expenses, he said.

Including the ₹5 incentive provided by the government, farmers will receive ₹47 per litre of milk.

A farmer supplying 10 litres of milk a day will earn an additional ₹2,100 a month, Shivakumar said.

The price revision is expected to generate an additional annual income of ₹1,850 crore to ₹2,100 crore for dairy farming families in the state, he added.

“Karnataka has a total of 28.84 lakh dairy farmers, of whom 67 per cent of KMF members are small and marginal farmers. This decision is a significant step towards providing fair remuneration for their hard work,” the Chief Minister said.

(With inputs from agencies)