Nandini Milk price hike | From your morning coffee to evening drinks and snacks, how will it affect your daily budget?

The Karnataka Cabinet on Thursday announced a hike in the price of Nandini milk by Rs 8 per litre from November 1. A litre of Nandini toned milk (blue packet) which is currently sold for Rs 46 will cost Rs 54 from Sunday, the single largest price hike till date. 

The price hike: what has changed?

Greater Bengaluru Development Minister Krishna Byre Gowda, while addressing a press conference after the Cabinet meeting stated, “Farmers had sought an increase by Rs 10 but the Cabinet felt that is not possible and has decided to increase the prices (of milk) by Rs 8 (per litre).”

“Of this Rs 7 will go to farmers, Rs 1 will go to milk federations,” he added.

Gowda pointed out that farmers who had been receiving Rs 35 per litre and an additional Rs 5 from the state government as encouragement fund, would get Rs 42 per litre and an additional Rs 5 encouragement fund. 

Cooperation Minister Laxman Savadi, also present at the presser, argued that the price hike was being implemented to prevent potential scarcity.

“What to do if there is a scarcity tomorrow?  Some other states provide higher rates. If farmers start selling milk to those states, there will be problems here," Savadi added. 

Gowda noted that despite the price rise, milk prices in Karnataka were still much lower than in several other states.

The price of milk is Rs 59 in Delhi, Rs 57 in Gujarat, Rs 59 in Maharashtra, Rs 56 in Rajasthan, Rs 64 in Telangana. In Tamil Nadu the price is lesser, Rs 40, but in Kerala it is Rs 56.

When enquired if the increase would lead to a corresponding increase in milk based products, Savadi answered, “When milk rate increases, the rate of ghee, butter, curd and buttermilk will also increase.”

Will your bills get bigger?

An Rs 8 per litre increase in price could have a substantial effect on households that purchase milk every day. A family consuming one litre daily would pay additional Rs 240 a month, while households using two litres daily would have to spend an extra Rs 480 a month. 

The impact does not stop at domestic consumption; it could extend beyond it. Tea and coffee stalls, bakeries, restaurants and other small businesses that rely on milk may begin to face higher operating costs.  

According to business owners, Darshinis, bakeries and sweet shops are likely to raise prices of coffee, tea, sweets and other milk based products.

A 10-15 per cent hike in hotel prices are expected in the coming days, said PC Rao, honorary president of the Bruhat Bengaluru Hotels Association (BBHA)

Bakery and sweet shop owners are also reportedly weighing their options amid the festive season.

Milk based products, including paneer, ghee, curd, buttermilk, sweets, yogurt, cheese and ice cream, are all expected to have a price hike in the coming days. 

Amidst the public outrage, Chief Minister D K Shivakumar defended his government’s decision to approve a per-litre rise by pointing out that people pay Rs 30-35 for a litre of water. 

“The milk price hike has been implemented to prevent losses to farmers,” Shivakumar told the reporters. “The government is helping farmers. Farmers are important to us,” he added.

"Prices of everything, including plastic packaging, diesel and petrol, have increased. The transportation cost has also gone up,” he explained.

(With DHNS inputs)