Bengaluru Nandini milk price hiked by ₹8: Will your daily cup of tea or coffee cost more? What the hotel association says

The Karnataka government has increased the price of Nandini milk ₹8 per liter across all categories and Nandini curd price as per ₹14 per kg. The Karnataka Cabinet gave its nod to the price hike on Thursday (October 29). Adjusted milk prices came into effect on November 1.

Nandini tinted milk will cost after revision ₹54 per litre. Nandini Shubham milk with a fat content of 4.5 percent will cost similarly ₹60 per litre, below the average price ₹62.80 in 10 other states, Karnataka Chief Minister DK Shivakumar said.

The revised prices, announced by the Karnataka Milk Federation (KMF) on Friday, include an increase in the price of a 500-gram curd bag from ₹28 to ₹34 (according to ₹6) and a 1 kg bag of ₹54 to ₹68 (from ₹14).

Will your daily cup of tea or coffee cost more?

The Bengaluru Hotels Association has reportedly warned that the increase in milk prices could cause inevitable price adjustments, especially for items that require large quantities of milk, including coffee, tea, snacks and meals.

The association said in a press release: “If the increase were limited to ₹2-3 per liter, there would be no need to increase the prices of coffee, tea or snacks in hotels. A sharp hike will require an increase in the prices of all milk-based foods and beverages.”

What does this mean for consumers?

According to NDTV, the Nandini milk price hike does not directly mean that every hotel or restaurant in the state will increase its menu prices from November 1.

Individual businesses decide whether to adjust rates based on their operating costs, milk consumption and profit margins.

With milk prices on the rise along with the cost of other essential ingredients, Bengaluru residents could see a spike in bills at their favorite cafes, bakeries and restaurants in the coming weeks, the report added.

Meanwhile, PC Rao, honorary president of the Bangalore Hotels Association termed the curd price hike as unwarranted and said it could adversely affect the hotel industry and common consumers.

Karnataka CM Shivakumar advocates hike in milk prices

Amid criticism, Karnataka Chief Minister DK Shivakumar on Saturday defended the hike in milk prices, saying it was necessary to protect the interests of farmers, especially as the state is reeling under severe drought.

DK Shivakumar was quoted by PTI as saying that the Karnataka Cabinet has decided to increase milk prices by ₹8 per litre, against the demand for a ₹12 hikes. He said milk prices had not been revised for several years, prompting the government to take the decision.

Query on ₹14 per kg increase in curd price Nandini, said the decision on curd prices rested with the Karnataka Milk Federation (KMF).

“We have only intervened in the price of milk. As for other factors, if the fat content is higher, a corresponding rate is set and the price increases accordingly,” he said.

CM: “Primary Reasons for Inevitable Revision”

CM Shivakumar said the main reasons for the inevitable revision were rising feed and labor costs, increased fuel and packaging costs and a drop in daily milk procurement due to drought.

from ₹8 increments per liter, ₹7 will go directly to farmers, increasing the purchase price ₹35 to ₹42 per liter. The remaining Re 1 will go to the dairy unions for operational expenses, he said.

Including ₹5 incentives provided by the government, farmers will receive ₹47 per liter of milk.

A farmer supplying 10 liters of milk a day earns extra ₹2,100 per month, Shivakumar said.

The price revision is expected to generate additional annual revenue of Rs ₹1,850 million crowns ₹2,100 crore for the families of dairy farmers in the state, he added.

“Karnataka has a total of 28.84 lakh dairy farmers out of which 67 per cent of KMF members are small and marginal farmers. This decision is a significant step towards providing fair reward for their hard work,” the Chief Minister said.

(With input from agencies)