Daijiworld Media Network – Bengaluru

Bengaluru, Nov 5: Even as consumers were celebrating the recent reduction in GST rates, the Karnataka Milk Federation (KMF) delivered an unexpected blow by announcing a sharp increase in the price of its popular Nandini Ghee. The federation has hiked the price by Rs 90 per kilogram, taking the retail rate from Rs 610 to Rs 700 per kg with effect from today.

According to the official order, the revised price comes into force immediately, while rates of other Nandini dairy products remain unchanged.

The sudden hike has triggered discussions among consumers, many of whom are already reeling from price increases in petrol, diesel, metro fares, bus tickets and essential commodities. With this rise, the once “soft and affordable” Nandini Ghee now costs Rs 700 per kg, drawing mixed reactions across the state.

Explaining the rationale behind the hike, KMF managing director Shivaswamy said that the revision was unavoidable due to escalating production and operational costs. “We have revised the price of Nandini Ghee by Rs 90 per kilogram. The current price stands at Rs 700,” he stated.

He further clarified that the federation has been directly transferring the increased milk procurement price—revised in April—straight to the farmers, without diverting it to the cooperative’s accounts. “Compared to private companies, our ghee is still priced lower. The direct payments to farmers, along with rising expenditure on management, transport and other overheads, have made this price revision necessary,” Shivaswamy explained.

Meanwhile, speculation has also been rife about a possible hike in milk prices following the ghee increase. Addressing this, the KMF managing director made it clear that there are no plans at present to raise milk prices. “There is no proposal before us to increase milk rates. The last hike was in April, and that additional amount has been passed on directly to farmers,” he said, adding that any future decision on milk pricing would require a joint meeting of all cooperative unions.

For now, consumers will have to absorb the Rs 90 jump in ghee prices, while milk rates remain stable—at least for the moment.