NEW DELHI: The Karnataka government has announced a Rs 4 per litre increase in milk prices, effective April 1.
Chief minister Siddaramaiah had earlier refrained from confirming the hike, stating that a final decision would be taken after cabinet discussions on March 27. The Karnataka Milk Federation (KMF) had proposed a ₹5 per litre hike, citing rising production costs, increased wages, and higher transportation expenses. However, the state government ultimately approved a ₹4 increase.
During discussions with KMF officials and ministers from the animal husbandry and cooperation departments, Siddaramaiah stressed that any price revision must directly benefit farmers. KMF officials highlighted financial difficulties faced by several milk unions, with Ballari’s already running a ₹1.4 crore deficit. They also pointed out that Karnataka’s milk prices were lower than those in neighboring states.
Acknowledging these concerns, Siddaramaiah reiterated that KMF and cooperative societies exist to support farmers, not to generate profits. He instructed KMF and milk unions to reduce administrative and overhead costs by 2.5% within three months and ensure that future expenditures remain within 2% of their budgets. Additionally, he directed them to minimise contract hiring to cut expenses.