It’s no secret that milk is one of the most integral spokes of India’s agricultural wheel. As per the Food and Agriculture Organization Corporate Statistical Database in 2021-2022, India is the highest milk-producing nation in the world, with a contribution of 24% of global milk production. That being said, it seems like there are some concerns about the rising costs of production, and Karnataka has recently been at the centre of that discussion.
Come August, milk prices in Karnataka are set to increase as per reports. Prices of milk are likely to rise by ₹3 per litre, according to officials of the Karnataka Milk Federation (KMF). Subject to cabinet approval, the new prices will come into effect on 1 August.
This decision came about after a meeting between Chief Minister Siddaramaiah and cooperation minister KN Rajanna, during which they decided to take these steps in order to help producers tackle the rising production costs of milk.
Farmers had originally called for a ₹5 per litre hike but as of now, that’s yet to be approved. KMF Chairman Bheema Naik added, "Once the cabinet decides to hike by ₹3 per litre, it will apply to all varieties of milk by KMF. We will ensure that the ₹3 per litre hike benefits the farmers."
Minister Rajanna also pointed out that Karnataka’s milk prices are currently at the lower end of the national spectrum with Nandini milk at around ₹39 per litre, while it’s at ₹56 in Andhra Pradesh, ₹44 in Tamil Nadu, and in Maharashtra, Delhi and Gujarat it is ₹54.
The Gujarat Cooperative Milk Marketing Federation Ltd.’s (GCMMF) company, the dairy behind the famous Amul brand and Mother Dairy have also increased their prices this year to account for the rising production costs.
Although it's as yet unclear whether other dairy products will follow suit, farmers nationwide have expressed concerns that milk production was becoming financially unviable due to low procurement prices, so come August it will become clear whether these corrective measures are sufficient.