Shivakumar directs KMF to cut curd prices; bus fare revision left to Transport Dept

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Shivakumar directs KMF to cut curd prices; bus fare revision left to Transport Dept

Synopsis

Karnataka CM Shivakumar is trying to soften the blow of a politically sensitive milk price hike by ordering a cut in curd prices — but with bus fares also under review and ₹38,000 crore in contractor dues unresolved, the government faces a trifecta of cost-of-living pressures heading into by-elections.

Key Takeaways

Shivakumar directed the Karnataka Milk Federation (KMF) to reduce curd prices on 2 November 2026 .
He defended the milk price hike, saying it benefits 11 lakh farming families and 25 lakh milk vendors .
Bus fare revision has been referred to the Transport Department ; special grants will meanwhile sustain the transport system.
Contractors' pending dues stand at ₹38,000 crore , partly attributed to works from former CM B.S.
Yediyurappa's tenure.
BAMUL President D.K.
Suresh said Karnataka produces 1.15 crore litres of milk daily and exports 20 lakh litres to other states.
Milk unions retain only 60 paise per litre from the price revision; the rest goes to farmers.

Karnataka Chief Minister D.K. Shivakumar on Monday, 2 November 2026, said he had directed the Karnataka Milk Federation (KMF) to reduce the price of curd, even as he defended the state's recent milk price hike, arguing that it would benefit 11 lakh farming families and 25 lakh milk vendors across Karnataka. Shivakumar made the remarks while speaking to the media near the National Gallery of Modern Art in Bengaluru.

Curd Price Direction and Milk Hike Defence

The Chief Minister said the directive to lower curd prices came during a felicitation visit by KMF office-bearers at his official residence, Krishna. 'When the KMF office-bearers came to felicitate me, I instructed them to reduce the price of curd,' he said. On the variation in prices across milk varieties, Shivakumar noted that milk with higher fat content commands a higher price and said officials would clarify the specifics.

Defending the overall milk price increase, he drew a pointed comparison: 'Nobody speaks when the prices of bottled water go up because the GST revenue goes to the Union government. The increase in milk prices will help 11 lakh farming families.' This comes amid growing consumer pushback against rising dairy prices in the state.

Bus Fare Revision: Transport Department to Decide

On the question of a possible hike in bus fares, Shivakumar said the final call rests with the Transport Department. He cited rising fuel costs as a key operational pressure. 'With the increase in petrol and diesel prices, it has become difficult to meet the daily expenditure on diesel. We have decided to provide special grants to sustain the transport system,' he said. He added that in areas with limited bus connectivity, fresh route calculations would guide new operations, and that he had formally instructed the Transport Department to determine the extent of any fare revision.

Contractors' Pending Dues of ₹38,000 Crore

Responding to three demands raised by representatives of the contractors' association, Shivakumar acknowledged that pending dues stood at ₹38,000 crore. He attributed part of the backlog to works initiated during the final six months of former Chief Minister B.S. Yediyurappa's tenure. 'We have now brought the situation under control. Bills related to the Public Works Department in Bengaluru are being cleared. There are substantial pending bills for works under the Cauvery irrigation projects. Some of the demands raised by the contractors' association have been accepted,' he said.

KMF: Milk Hike to Benefit Farmers and Vendors

Bengaluru Urban Milk Producers' Cooperative Union (BAMUL) President D.K. Suresh, speaking at the felicitation event, said Karnataka produces nearly 1.15 crore litres of milk daily, with significant private procurement in North Karnataka. Suresh noted that milk prices in several neighbouring states — including Tamil Nadu, which recently raised prices by ₹12 — already exceed Karnataka's rates. 'Nandini products are supplied to Tamil Nadu, Kerala, Andhra Pradesh and Maharashtra, where milk prices are higher than in Karnataka,' he said.

Suresh added that the bulk of the benefit from the price revision would flow to farmers, with milk unions retaining only 60 paise per litre. He also pointed to an export opportunity, with nearly 20 lakh litres supplied to other states daily, and said the Nandini brand had received quality certification with potential to generate employment for five lakh youth.

By-Elections and Hiriyur Visit

On by-election preparations, Shivakumar said overseeing arrangements was part of his responsibility. He announced a visit to Hiriyur on Tuesday to launch several development projects in the town. All eyes will now be on the Transport Department's timeline for a fare revision decision and KMF's formal announcement on curd prices.

Point of View

But it does not address the cumulative cost burden on urban households who buy both. More significantly, with bus fares also under review and ₹38,000 crore in contractor dues festering, the Karnataka government faces a compounding affordability narrative that could bite ahead of by-elections. The decision to push the bus fare call to the Transport Department rather than announce a freeze suggests the hike is a matter of when, not if.
NationPress
2 Nov 2026

Frequently Asked Questions

Why did Karnataka CM Shivakumar direct KMF to reduce curd prices?
Shivakumar issued the directive during a felicitation visit by KMF office-bearers on 2 November 2026, seeking to offset consumer backlash against a recent milk price hike. He maintained that the milk price increase was justified as it benefits 11 lakh farming families and 25 lakh milk vendors across Karnataka.
Will Karnataka bus fares increase?
The Karnataka government has referred the bus fare revision decision to the Transport Department. Chief Minister Shivakumar cited rising petrol and diesel prices as making it difficult to cover daily diesel costs, but stopped short of announcing a hike himself.
What is the status of Karnataka's contractor pending dues?
Pending dues to contractors stand at ₹38,000 crore, according to Shivakumar. He said part of the backlog stems from works begun in the last six months of former CM B.S. Yediyurappa's tenure, and noted that some contractor demands have been accepted while PWD bills in Bengaluru are being cleared.
How does Karnataka's milk price compare to neighbouring states?
According to BAMUL President D.K. Suresh, milk prices in Tamil Nadu, Kerala, Andhra Pradesh, and Maharashtra are already higher than in Karnataka. Tamil Nadu recently raised milk prices by ₹12, and Amul has also increased its prices, providing context for Karnataka's revision.
Who benefits from the KMF milk price hike?
The bulk of the benefit flows to farmers, with milk unions retaining only 60 paise per litre from the revision. The hike is projected to benefit 11 lakh farming families and 25 lakh milk vendors in Karnataka, according to both CM Shivakumar and BAMUL President D.K. Suresh.
Nation Press
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