DK Shivakumar Defends Karnataka Milk Price Hike: Rs 8 Increase Aimed at Protecting Farmers

By Political Bureau

Bengaluru

Deputy Chief Minister DK Shivakumar has officially defended the state government’s decision to increase the price of Nandini milk by Rs 8 per litre, asserting that the revision is essential to protect dairy farmers facing severe agrarian distress and rising production costs.

The price adjustment comes after extensive demands and protests by milk producers and farmer unions who had originally pressed for a hike to offset escalating operational expenses.

Breaking Down the Price Structure

Addressing press representatives, DK Shivakumar outlined how the revised tariff will be distributed across the supply chain:

 Direct Benefit to Farmers: Out of the total Rs 8 hike, Rs 7 per litre will go directly to dairy farmers, significantly boosting the base procurement rate.

 Support Subsidies: Combined with state government incentive schemes of Rs 5 per litre, total financial returns for dairy farmers will see a substantial rise.

 Cooperative Operational Costs: The remaining Re 1 per litre will be allocated to local milk unions to help absorb administrative, packaging, and transportation overheads.

Government Justification and Regional Tariff Comparisons

Defending the administration’s decision against opposition criticism over the cost-of-living impact, DK Shivakumar highlighted severe environmental and logistical challenges facing the agricultural sector.

With drought conditions affecting cattle feed availability and daily milk procurement witnessing a decline across state cooperatives, he emphasized that sustaining livestock and keeping farmers financially viable was the government’s top priority. He also noted that maintaining lower milk tariffs locally compared to neighboring regions had created supply distortions along border areas.

Comparing retail tariffs, he pointed out that Nandini milk prices remain considerably lower and more affordable than tariffs across other major markets in Western and Southern India.

Political Fallout and Market Impact

While representatives supported the step to safeguard the rural economy, the price shift is expected to ripple across consumer markets. Local hotel, bakery, and tea stall associations have indicated that rising input costs will likely trigger secondary price adjustments for tea, coffee, and dairy products.

However, DK Shivakumar reiterated that ensuring the financial security of lakhs of rural households engaged in dairy farming remains the primary duty of the state government.