Increase in milk price by ₹8 due to tea push, coffee price by ₹5

Nandini milk prices to rise by ₹8 per liter in Karnataka. | Photo credit: ALLEN EGENUSE J.

With milk prices set to increase by ₹8 per liter from November 1, hotels and spice shops have announced a ₹5 hike in tea and coffee prices.

Hotel associations also indicated that the increase in milk prices would increase the cost of dairy desserts.

The last time the government increased the price of milk by ₹4 per liter was on 1 April 2025. Prior to this increase, in June 2024, milk prices were increased by ₹2 per liter in proportion to an additional 50 ml per 500 ml pack of milk by the state government.

PC Rao, president, Bangalore Hotels’ Association, said, “For the first time in history, the government has increased the price of milk by ₹ 8 per litre. If it was increased to just ₹ 2 to 3 per litre, hotels and restaurants would not increase the price of tea and coffee. Due to the drastic increase in the price of milk, we will discuss the prices of tea and coffee accordingly.”

Meanwhile, GK Shetty, president, Karnataka State Hotels’ Association, said, “With the rising prices of all commodities including milk, rice and others, we will increase the prices of tea, coffee and other items by 5%. The prices of desserts like carrot halwa, payasam, badam milk and others will increase, which will be decided in a few days.”

At the same time, spice shops across the state that sell tea and coffee have also decided to hike the price.

Ravi Shetty Byndoor, president of the Karnataka Rajya Karmika Parishath (KRKP), said, “KRKP has always fought for the rights of bakeries and spice shops in Karnataka. Spice shop owners have decided to increase the prices of tea and coffee by ₹5. At present some shops sell tea and coffee at $152 and now at ₹152. ₹17 to ₹20 per cup.”

Pradeep Krishna, a resident of Jayanagar, expressed his displeasure over the rise in milk prices. “We understand that farmers need to be supported, but a ₹8 hike all of a sudden is definitely not fair to the common man. They should have hiked it by ₹3-4 per litre. All prices, including house rent, are being hiked apart from our salaries to meet rising expenses.”

Meanwhile, Madhu Iyengar, secretary, Karnataka Bakeries, Sweets and Cafe Association (KBSCA), said, “Since all the commodities used by the common man have gone up, we will not increase the prices of sweets or any bakery items for now. There is also a lot of competition among the various sweet and bakery customers. If one bakery and pastry shop survives the existing prices, its owner is likely to survive. so we will continue to operate with the same prices.”

Mr. Iyengar also noted that the profit margins of bakeries and confectioneries have already decreased by 10% to 12% as the prices of all other commodities, especially sugar, have increased and will further decrease as the price of milk rises.

Published – 29 Oct 2026 22:29 IST