Milk price hiked: People in Karnataka still get milk at Rs 20 low vs other cities, here's HOW and WHY

New Delhi: Citing cost escalation, major dairy companies have increased the retail price of milk twice in the last six months. Major milk selling companies Amul and Mother Dairy have increased the price of milk by about 8 per cent in the last six months. The prices of both dairy companies' packaged milk increased again this week. Its impact can be seen in a variety of large and small cities, including Delhi and Mumbai.  People in Delhi, Mumbai, Kolkata, and surrounding areas pay about 61 rupees per litre for full cream milk, about 51 rupees per litre for toned milk, and a packet of double toned milk will cost about 45 rupees per litre as a result of the price rise.

However, you may be surprised to know that people in Karnataka are still getting milk at a very low cost. Milk costs just between 38 and 46 rupees per litre in Bengaluru even after a price hike. (Also Read: Airtel Chairman Sunil Mittal hails govt for ease of doing biz in 5G allocation)

What Company said about the Price hike?

The Gujarat Cooperative Milk Marketing Federation (GCMMF), which sells milk and other dairy products under the Amul brand, announced on August 16 that it has decided to raise the price of milk by two rupees per litre beginning on August 17 in Ahmedabad and Saurashtra of Gujarat, Delhi-NCR, West Bengal, Mumbai, and other markets. A 4% increase in MRP will result from the increase of 2 rupees per litre. The company claimed that the price increase was necessary due to a rise in the total cost of operating and milk production. The cost of feeding cattle alone has grown by around 20% over the previous year. Our member unions have likewise raised farmers' prices by 8–9% over the preceding year in response to the surge in input costs, said GCMMF officials. (Also Read: CCPA imposes fine on Flipkart for selling sub-standard pressure cookers)

Why Karnataka is still getting milk at a very low cost?

Beginning in 2008, the Yediyurappa administration began rewarding farmers who sold milk to dairy unions connected to the Karnataka Cooperative Milk Producers' Federation with a bonus of 2 rupees per litre over and above the procurement price. Following suit, Siddaramaiah, the chief minister, increased the incentive to Rs 5 per litre in 2013. After that, the Yediyurappa administration increased it again to Rs 6 per litre.

Indian Express reported that as a result, Bengaluru consumers paid Rs 14 less per litre for toned milk than residents of other major cities, increasing the farmers' earnings per litre of milk by Rs 6. In the state, the KMF sells milk under the Nandini brand name.