Karnataka has approved an ₹8-per-litre increase in Nandini milk prices, with the revised rates scheduled to take effect from November 1, 2026. The decision, approved by the state Cabinet on October 29, is expected to increase household milk expenses while providing additional financial support to dairy farmers.
The revised pricing is expected to push the price of Nandini’s basic toned milk from ₹46 to ₹54 per litre. The increase comes amid growing concerns over rising dairy production costs, drought-related distress and declining milk procurement across the state.
₹7 of the Increase to Go to Dairy Farmers
According to Karnataka Minister Krishna Byre Gowda, ₹7 of the additional ₹8 per litre will go directly to milk-producing farmers, while the remaining ₹1 will be allocated to dairy cooperatives to help cover operational expenses.
Under the revised arrangement, the procurement price paid to farmers will increase from ₹35 to ₹42 per litre. The existing state government incentive of ₹5 per litre will continue, taking farmers’ total realisation to ₹47 per litre, including the incentive.
Rising Costs and Declining Milk Production
The price revision follows demands from dairy farmers and milk cooperatives for better returns amid increasing expenditure on cattle feed, fodder, medicines, transportation and packaging.
Drought conditions have added to the pressure on milk production. The state government has also cited a decline of approximately 10 lakh litres in daily milk procurement, highlighting the challenges facing the dairy sector.
Milk producers and cooperative representatives had sought an increase of ₹10 per litre. After discussions, the Cabinet approved an ₹8-per-litre revision, with the government aiming to balance farmers’ financial needs against the impact on consumers.
What It Means for Consumers
The increase is expected to raise milk bills for households across Karnataka from November 1. Hotels, tea stalls, cafés and other food businesses that depend heavily on milk may also face higher operating costs.
While the revised rate for basic toned milk is expected to rise to ₹54 per litre, prices for other milk varieties may vary depending on the decisions of individual milk unions and the applicable product category.
The decision marks a significant price revision for Nandini, the flagship dairy brand of the Karnataka Milk Federation. It also highlights the continuing challenge of ensuring remunerative prices for dairy farmers while keeping an essential household staple affordable for consumers.