Karnataka to hike milk prices by Rs 8 per litre from November 1

Milk prices in Karnataka will increase by Rs 8 per litre from November 1 after the state Cabinet approved the hike on Thursday, Minister Krishna Byre Gowda said, adding that Rs 7 of the increase will go to milk-producing farmers and Re 1 to dairy cooperatives.

The decision comes after milk producers staged protests seeking higher prices, with their representatives demanding an increase of at least Rs 10 per litre, Gowda said after the Cabinet meeting.

Farmers to get Rs 7 more per litre

Explaining the rationale behind the decision, Gowda said farmers had been facing a crisis, prompting members across political parties in the Legislative Council to call for measures to support them. Dairy cooperatives had also sought a price revision.


"Given the crisis faced by farmers, members of all parties in the Legislative Council had called for measures to support them. Milk producers themselves had taken to the streets in protest, and the cooperatives had also pressed for an increase," Gowda said.

He said the Cabinet had considered the matter on two or three occasions before reaching a decision.

"Respecting these demands, the Cabinet has today decided to increase the price paid to milk-producing farmers by Rs 7 per litre. In addition, the cooperatives will receive an increase of Re 1 per litre. Thus, the total increase will be Rs 8 per litre," he said.

Gowda added that representatives of milk cooperatives had met the chief minister, the animal husbandry minister and the cooperation minister during the protests to press for a minimum Rs 10 per litre increase.

Farmers to receive Rs 47 per litre, including incentive

The minister said the Cabinet decided against the full Rs 10 increase after deliberations, settling on Rs 8 per litre instead.

"Although farmers demanded an increase of Rs 10 per litre, it was felt that so much increase cannot be done. After discussions in the Cabinet today, under the chairmanship of the chief minister, we decided on an increase of Rs 8 per litre, of which Rs 7 will go to the farmers and Re 1 to the milk cooperatives," he said.

Gowda said milk producers currently receive around Rs 35 per litre, apart from the Karnataka government's incentive of Rs 5 per litre. With the revision, the price paid to farmers will rise to Rs 42 per litre, while the incentive will remain unchanged.

"This means farmers will receive a total of Rs 47 per litre, including the government incentive. This will benefit lakhs of farming families," he added.

The minister said the Cabinet's decision was unanimous.

(With inputs from PTI)