Milk Prices to Surge: Karnataka Cabinet Approves Rs 8 Per Litre Hike

Karnataka Cabinet approves a milk price hike of Rs 8 per litre starting November 1 to support farmers facing drought conditions.

KRISHNVEER SINGH29 October 20262 min read1 viewBusiness
Milk Prices to Surge: Karnataka Cabinet Approves Rs 8 Per Litre Hike

In a move aimed at providing much-needed relief to the farming community, the Karnataka Cabinet has officially approved a Karnataka milk price hike of Rs 8 per litre. The decision, announced on Thursday, comes after intense deliberations and pressure from dairy farmers across the state.

The Decision and the Numbers

Chief Minister DK Shivakumar confirmed the price adjustment, noting that the government sought a middle ground between the demand and the final implementation. While dairy stakeholders had pushed for a steeper increase of Rs 12 per litre, the Cabinet settled on a hike of Rs 8.

Defending the move, CM Shivakumar pointed out that milk costs in neighboring states are already significantly higher, suggesting that the current adjustment is reasonable and necessary.

Why the Price Increase?

Minister Krishna Byre Gowda provided the context behind the decision, emphasizing that the hike will come into effect from November 1. He highlighted several critical factors that forced the government's hand:

  • Drought Conditions: The state is currently grappling with drought, which has severely impacted agricultural output.
  • Production Drop: Following the declaration of drought, milk production in Karnataka has plummeted by approximately 10 lakh litres.
  • Farmer Distress: Farmers have been protesting not only over milk prices but also over sugarcane rates, arguing that existing prices are insufficient to sustain their livelihoods.

Minister Gowda stressed that dairy farming serves as a vital financial safety net for many families, helping them cover essential expenses such as children's education, medical treatments, and home construction, especially when traditional crop farming becomes uncertain.

A Consensus Across Party Lines

The issue of milk pricing was not just a government deliberation but a matter of intense public and political debate. According to Minister Gowda, tens of thousands of farmers had previously staged protests to demand a revision. This urgency was mirrored in the state's legislative bodies, with discussions taking place in both the Vidhana Sabha (Legislative Assembly) and Vidhana Parishad (Legislative Council) across various political party lines.

"Except for Karnataka, milk prices have increased in other states. In Karnataka, it is only Rs 46," Minister Gowda noted, justifying the need for the update.

Update on Bus Fare Hikes

Alongside the milk price discussion, the Cabinet also addressed the possibility of increasing bus fares. Transport corporations had requested a hike citing the rise in petrol and diesel prices that occurred last January.

However, Minister Gowda clarified that while the matter was discussed, bus fares have not been increased for the time being.

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