Karnataka has approved an ₹8-per-litre increase in milk prices, effective November 1, 2026, following demands from dairy farmers and milk cooperatives for better returns amid rising production costs.
According to The Economic Times, the state Cabinet approved the revision on October 29. Of the total increase, ₹7 per litre will go to milk producers, while ₹1 will be allocated to dairy cooperatives to help cover operational expenses.
Farmers to Receive Higher Milk Procurement Prices
The revision is intended to improve farm-level earnings as dairy producers face increasing costs and pressure on milk production.
Under the revised arrangement, the procurement price paid to farmers will rise from ₹35 to ₹42 per litre. Including the existing Karnataka government incentive of ₹5 per litre, farmers will effectively receive ₹47 per litre.
The decision follows protests by dairy farmers who had demanded a minimum increase of ₹10 per litre.
Retail Milk Prices Expected to Reach ₹54/Litre
The price revision is expected to increase the retail price of Nandini toned milk from ₹46 to approximately ₹54 per litre.
The final selling prices of individual products will be determined by the respective milk unions, taking into account factors such as fat and solids-not-fat (SNF) content.
The ₹1-per-litre allocation to cooperatives is intended to help meet rising expenses related to packaging, transportation, fuel and other operational requirements.
Drought and Rising Costs Add to Farmer Pressure
The state government cited farmer distress, drought conditions and declining milk procurement among the factors behind the decision.
According to state officials, approximately 228 taluks have been affected by drought, while daily milk procurement has declined by around 10 lakh litres.
Dairy cooperatives have also highlighted increasing expenditure on cattle feed, fodder, medicines, transportation and packaging.
Implications for Karnataka's Dairy Industry
The increase highlights the continuing challenge of balancing remunerative milk procurement prices with consumer affordability and cooperative operating costs.
For dairy farmers, higher procurement prices can help improve returns and support continued milk production. For cooperatives, the additional allocation may provide some relief from rising collection and distribution expenses.
Consumers, however, will face higher milk prices from November 1.
Karnataka's decision seeks to strengthen dairy farmer earnings while supporting cooperative operations, highlighting the importance of sustainable pricing across the dairy value chain.
Source: Read full story here 28 Oct, 2026 Edited and Reported by
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