Cabinet approves Rs 8 per litre milk price hike from November 1

Bengaluru: In a major decision affecting consumers across Karnataka, the state Cabinet has approved an increase of Rs 8 per litre in milk prices, with the revised rates coming into effect from November 1. Of the hike, Rs 7 will go to milk producers and Re 1 to the respective milk unions.

The decision was taken at the Cabinet meeting held on Wednesday. According to the government, the increase is intended to provide financial relief to dairy farmers amid drought conditions and rising production costs. Milk unions had reportedly sought a larger increase of Rs 10 per litre. Discussions had also centred on how the additional revenue should be distributed between farmers and the unions. Chief Minister D.K. Shivakumar had earlier indicated a proposed distribution pattern of 80:20, while the unions had sought a 70:30 arrangement.

The Cabinet has now approved an increase with 90 per cent of the additional amount going to farmers and the remaining 10 per cent to the milk unions. Explaining the decision, Shivakumar said the government had considered the demand for a Rs 10 hike but settled on Rs 8 after discussions. He said Rs 7 would be paid to farmers and Re 1 retained by the unions, adding that the decision had been taken unanimously.

The Chief Minister said dairy farmers would benefit from the revised arrangement. He stated that producers were receiving Rs 35 per litre and would now get Rs 42, including the existing government incentive of Rs 5 per litre. The government expects the increase to help farmers manage expenses during the difficult agricultural period.

The price revision is likely to affect household budgets, hotels, tea stalls and other businesses that depend on milk. Consumers will have to pay the revised rate from November 1, although the final retail price may vary according to the milk variant and applicable union pricing.

Meanwhile, the Cabinet also discussed a possible increase in bus fares. However, it left the decision to the Transport Department, which is expected to examine the financial position of the transport corporations and other relevant factors before taking a call.