'There will be no increase in milk prices...': Karnataka CM Siddaramaiah clarifies on Nandini milk price hike

The Karnataka Milk Federation (KMF) recently announced a significant change to the packaging and pricing of Nandini milk, which will take effect from June 26. This decision has led to a political debate, with the opposition blaming the Siddaramaiah-led government. However, the government insists that the decision was made independently by KMF.

Under the new plan, KMF will not increase the price per unit of milk but will increase the volume in each milk packet. Each packet will now contain an additional 50 ml of milk, and the price will be adjusted proportionally for the increased volume. Specifically, half-liter (500 ml) milk packets will be replaced by 550 ml packets, and one-liter packets will be replaced by 1,050 ml packets.

The revised prices will be Rs. 24 for the 550 ml packet and Rs. 44 for the 1,050 ml packet. Previously, these packets were priced at Rs. 22 for 500 ml and Rs. 42 for 1,000 ml. This means that while the price is slightly higher, consumers will be getting more milk for their money.

In a post on X, Chief Minister Siddaramaiah explained that the main reason for this change is to ensure that farmers' additional milk production is not rejected at collection centers. Over the past year, milk production in Karnataka has increased by 15%. Last year, the state produced an average of 90 lakh liters of milk per day, which has now increased to 99 lakh liters per day. The increase in volume per packet is intended to accommodate this surplus production and ensure that farmers are not turned away.

Siddaramaiah said, "There will be no increase in milk prices per unit, but only an increase in the volume per packet with a proportionate increase in the price for the increased volume."

He added that this decision would benefit both farmers and consumers. By increasing the milk content in each packet by 50 ml and charging only Rs. 2 more for the additional milk, KMF aims to manage the increased milk production effectively and ensure that the surplus milk reaches consumers.

Currently, a significant portion of milk produced in Karnataka is used for milk powder production. Around 30 lakh liters of milk are used daily to produce 250 metric tons of milk powder to meet existing demand. This new decision will help balance the needs of the milk powder production industry with those of the liquid milk market.

Siddaramaiah also highlighted the government's efforts to support dairy farmers. When the current government came into power, the average daily milk collection in the state was around 72 lakh liters. The government implemented a Rs. 3 increase in the milk price, directing the additional funds directly to farmers, making dairy farming more profitable. Additionally, good rainfall this year has ensured ample green fodder for cattle, contributing to the increased milk production.

"Due to these factors, milk production has now reached nearly 1 crore liters per day," Siddaramaiah said. He emphasized that the decision by KMF is intended to handle this increased production in a way that benefits both farmers and consumers.