Karnataka and Tamil Nadu Dairy Cooperatives Raise Milk Prices
Karnataka Chief Minister DK Shivakumar ordered a curd price reduction following hikes, while Tamil Nadu's Aavin proposed a milk price increase to cover operational costs.
Dairy cooperatives in southern India are adjusting prices to combat rising operational costs, leading to government intervention in Karnataka and proposed hikes in Tamil Nadu.
DK Shivakumar, the Chief Minister of Karnataka, directed the Karnataka Milk Federation (KMF) to reduce the price of curd on November 2. This order followed a sharp increase where one-kilogram curd pouches rose from Rs 54 to Rs 68. KMF officials attributed the cost increase to higher fuel prices, refrigeration electricity, and the cost of imported bacteria cultures from West Asian countries. Simultaneously, milk prices across various variants increased by Rs 8 per litre. While the Bangalore Hotels Association criticized the curd hike for adding 15% to their expenditures, Shivakumar defended the broader revisions as a necessary benefit for 11 lakh farmer families.
In Tamil Nadu, the cooperative producer Aavin has proposed a retail milk price increase of ₹5 per litre. The proposal suggests allocating ₹4 to the cooperative for expenses and ₹1 to increase profit margins for retail operators, who claim current commissions are insufficient to cover rent and maintenance. Aavin noted that its low prices relative to private brands have caused high commercial demand from hotels and tea stalls, occasionally resulting in household shortages. The price hike awaits final approval from the Government of Tamil Nadu.
