Milk Prices To Be Hiked In Karnataka Due To Rise In Production Cost

Bengaluru: Karnataka government will hike milk prices in the state due to rise in the production cost, the Animal Husbandry Minister K Venkatesh informed on Wednesday.

Speaking on the matter, K Venkatesh said that the milk prices in the state will be revised in response to a demand by farmers' as they deal with high production cost. However, the minister did not specify the exact amount of hike in price and by when it will be effective.

"There is a demand from farmers to increase milk prices. We have discussed it, and they are asking for a hike of Rs 10 per litre. We have not yet decided on the exact increase, but we will raise the price after discussing it with the chief minister," the Animal Husbandry Minister K Venkatesh said.

Venkatesh further added, “Production costs are rising daily, so the farmers' demand is reasonable. Keeping both consumers and farmers in mind, we will implement a price increase.”

Previously, Karnataka Milk Federation chairman Bheema Naik had also hinted at a possible hike in milk prices. The federation markets its dairy products under the Nandini' brand.

Venkatesh also informed that the state owes more than Rs 650 crore to the milk production which is adding a financial strain to this sector. He said that the increase in milk prices is inevitable.

KMF to increase footprint in North India

The Karnataka Milk Federation is looking to expand its market in Northern India with a new plant in Hathras, Haryana . The venture, the second largest milk production in the country has already started bringing its products in New Delhi and nearby regions. With the proposed new plant in Hathras, the Karnataka Milk Federation will launch its products in Agra, Aligarh, Meerut and Mathura and their nearby regions. Besides the northern belt, KMF is also planning to bring its products in Rajasthan .