Bengaluru: Consumers in Karnataka will have to brace for an increase in milk prices, as the Karnataka Milk Federation (KMF) has decided to hike the price of Nandini milk by Rs. 5 per litre.

The new rates will come into effect immediately after the State Budget on Mar. 7.

As per revised pricing structure, the cost of a litre of Nandini toned milk will rise to Rs. 47. Additionally, the quantity of milk per packet will be standardised at one litre, as opposed to the current 1,050 ml per packet.

This marks the second major price hike by KMF in the last three years. In 2022, milk prices were increased by Rs. 3 per litre, followed by another rise of Rs. 2 per packet in 2024, though KMF had justified the latter increase by citing a corresponding rise in milk quantity per packet.

The impending hike follows a series of price increases in other essential commodities and services, adding to the financial burden on consumers.

Coffee Brewers Association has already announced a Rs. 200 per kg increase in coffee powder prices starting March, while public transport fares for BMTC buses and Namma Metro have also been revised upwards.

Additionally, the State Government is considering a water tariff hike and Electricity Supply Companies (Escoms) have sought approval for an increase of 67 paise per unit from the Karnataka Electricity Regulatory Commission.

KMF Managing Director B. Shivaswamy stated that the price revision is a response to persistent demands from dairy farmers for a Rs. 5 per litre increase. “We are currently procuring around 79-81 lakh litres of milk per day, a reduction from the previous 85-99 lakh litres per day. The additional milk supply provided to consumers in previous years will now be discontinued,” Shivaswamy stated.

He added that despite the hike, Nandini milk would remain more affordable than several other brands in Karnataka and neighbouring States, as well as online alternatives.

Meanwhile, KMF is in discussions with Farmer Unions, Milk Unions and Employee Associations to determine the cost-sharing model for the revised price.

A KMF official, speaking on condition of anonymity, noted that while the increased price is meant to benefit farmers, Employees’ Unions have raised concerns regarding financial liabilities, including the implementation of the 7th Pay Commission recommendations and pension obligations.