Nandini price hike: Govt weighs farmer returns, consumer burden

Bengaluru: A proposed increase in the price of KMF Nandini milk has triggered a fresh debate in Karnataka, with milk unions pressing for a Rs 10 per litre hike and the government examining procurement prices, production costs and rates prevailing in neighbouring states.

The issue was taken up after representatives of milk unions met Chief Minister D.K. Shivakumar and sought an increase, arguing that dairy farmers are facing mounting expenses. A delegation led by D.K. Suresh pointed to rising diesel, cattle feed, raw material and other operational costs affecting the dairy sector.

Shivakumar has asked officials to prepare comparative data on milk prices and the amount being paid to farmers in Karnataka and other states. The government will study the figures before taking the matter to the Cabinet for a final decision.

Procurement rates higher in southern states

Karnataka currently pays around Rs 35 per litre to milk producers, according to the figures cited by the unions. This compares with around Rs 40.50 paid by Amul in Delhi, Rs 40.03 in Gujarat and Rs 40 in Maharashtra. Gokul in Maharashtra reportedly pays around Rs 40.05.

The figures also show higher procurement rates in southern states. Vijay brand in Telangana reportedly pays Rs 41.05 per litre, while Heritage pays around Rs 42. Aavin in Tamil Nadu pays around Rs 42.24 and Arokya around Rs 41. Milma in Kerala reportedly pays Rs 41.80.

Farmers have maintained that the present procurement price does not adequately cover the rising cost of dairy farming. They have cited higher fodder and cattle maintenance expenses, water shortages and declining milk yield as major challenges.

Milk unions, meanwhile, say their own processing and administrative expenses have increased. They have proposed that the Rs 10 retail hike be divided, with Rs 7 going to farmers and Rs 3 being retained by the unions to meet operational costs.

Farmers have opposed this arrangement and want the full benefit of any increase to reach milk producers. The government will have to weigh the demand for better returns to farmers against the impact of a retail price increase on consumers. The Cabinet is expected to consider the comparative data and other cost factors before deciding on the proposed Nandini milk price revision.

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