The Karnataka government is examining a formal demand from cooperative milk producers' federations to raise both the procurement and selling price of Nandini milk by ₹8 to ₹10 per litre, following a delegation meeting with Chief Minister D.K. Shivakumar at Vidhana Soudha in Bengaluru on Tuesday, 22 September 2026. The move, if approved, would mark the first price revision in over one-and-a-half years for one of South India's most widely consumed dairy brands.

What the Delegation Sought

A delegation representing cooperative milk producers' federations met Chief Minister Shivakumar and submitted a formal representation calling for an upward revision in both procurement and retail prices. The delegation argued that sharply rising input costs — including cattle feed, fodder, veterinary medicines, and other production expenses — had made current price levels unsustainable for dairy farmers.

D.K. Suresh, president of the Bengaluru Urban and Rural Milk Producers' Cooperative Unions (BAMUL) and Chief Minister Shivakumar's younger brother, spoke on behalf of the delegation. He said drought conditions had compounded the crisis by reducing agricultural income and limiting fodder availability for livestock.

Karnataka vs Neighbouring States: The Price Gap

Suresh cited a stark procurement price disparity between Karnataka and its neighbours. Karnataka's cooperative federations currently procure toned milk at ₹35 per litre, compared to ₹41.50 in Andhra Pradesh, ₹41.80 in Kerala, ₹41 in Maharashtra, and ₹42.24 in Tamil Nadu. He also claimed Karnataka's maximum retail price was at least ₹12 per litre lower than in neighbouring states.

The delegation warned that private dairy companies were actively increasing their procurement volumes in Karnataka, creating direct competition for cooperative federations and threatening the state's cooperative milk supply chain.

What Shivakumar Has Directed

Chief Minister Shivakumar has asked officials to compile comprehensive data before any decision is taken. Specifically, he sought details on the rise in cattle feed prices over the past decade, the per-litre cost of milk production, the volume of milk farmers currently sell outside cooperative federations, total procurement volumes, and prevailing prices in neighbouring states.

The directive signals that the government intends a data-driven review rather than an immediate decision. No timeline has been announced for a final call.

Why Milk Prices Have Been Held

According to Suresh, Karnataka's cooperative federations had consciously refrained from raising prices for over one-and-a-half years in the interest of consumers, even as various cooperative organisations and private dairies across other states have continued increasing prices. He said this restraint, while consumer-friendly, had put mounting pressure on the financial viability of dairy farmers.

What Happens Next

The government's decision will hinge on the data submitted by officials, including a cost comparison with neighbouring states and an assessment of how a price revision would affect consumer spending and farmer incomes. Industry observers note that a hike, if implemented, would also affect the price of Nandini-branded milk products. Any revision will need to balance farmer welfare against affordability concerns in a state where Nandini commands a dominant market position.