The ₹2 increase in Nandini milk prices, effective June 26, includes an additional 50 ml per packet to support farmers due to higher procurement costs and rising production levels.
In a recent announcement, the Karnataka Milk Federation (KMF) has revealed a ₹2 per liter increase in the price of Nandini milk, effective June 26, 2024. While this price hike might initially seem straightforward, it comes with significant changes designed to benefit both consumers and dairy farmers. Here’s a detailed look at the reasons behind this adjustment and its implications.
Why Is the Price Going Up?
The price increase of ₹2 per liter for Nandini milk is closely linked to an important change: an additional 50 ml of milk will be included in each half-liter and one-liter packet. This decision comes in response to the increased volume of milk production and the associated costs of managing this surplus.
Increased Milk Production:
Milk production in Karnataka has risen notably, from 90 lakh liters per day last year to over 99 lakh liters currently. This surge in production means that more milk needs to be processed and marketed. The additional 50 ml per packet is a strategic response to handle this increased volume efficiently.
Supporting Dairy Farmers:
The rise in milk production necessitates a supportive approach to ensure that dairy farmers are compensated fairly for their products. By adjusting the price and increasing the quantity of milk per packet, KMF aims to provide a balance between managing production costs and supporting local dairy farmers.
Details of the Price Adjustment
Here’s how the new pricing structure will affect Nandini milk products:
- 500 ml Packet: The price will rise from ₹22 to ₹24. However, the packet will now contain 550 ml of milk, offering consumers more value despite the higher price.
- 1000 ml (1 liter) Packet: The price will increase from ₹42 to ₹44, with the quantity going up to 1050 ml. This change ensures that consumers receive additional milk for the extra amount paid.
This adjustment means that consumers will benefit from receiving more milk in each packet, making the price increase more palatable.
Impact on Consumers
The increase in milk prices, while noticeable, is designed to provide added value. By including extra milk in each packet, KMF is addressing both the need to manage increased production and the desire to offer consumers a fair deal. This approach helps mitigate the impact of the price rise on household budgets while ensuring that dairy farmers are supported.
Rationale Behind the Increase
- Operational Costs and Fuel Taxes:
The price hike is partly driven by increased operational costs, including those associated with transportation. Recently, the Karnataka government raised sales tax on fuel, leading to higher transportation expenses. These added costs are a significant factor in the decision to increase milk prices.
- Milk Storage and Utilization:
KMF has noted that milk storage levels are high due to the current harvest season. With storage nearing one crore litres, it is essential to manage this surplus effectively. By increasing the quantity of milk in each packet, KMF aims to ensure that all produced milk is utilised and not wasted.
- Consumer Value:
Despite the price increase, the additional milk in each packet offers enhanced value for consumers. This strategy helps address the financial pressures faced by dairy farmers and aligns with KMF’s commitment to providing quality products.
The ₹2 per liter increase in Nandini milk prices, effective June 26, 2024, reflects a thoughtful response to the challenges of rising milk production and increased operational costs. With added milk quantity in each packet, consumers will receive more for their money, while dairy farmers benefit from fair compensation. This approach highlights the complexities of the dairy industry and the efforts to balance cost pressures with consumer value.
