The Karnataka Milk Federation (KMF) has reduced the price of Nandini curd by Rs 2 per litre following widespread public protests. This decision comes one day after the federation increased milk prices by Rs 8 and curd prices by up to Rs 14 per litre. The adjustment reflects the ongoing challenge of balancing higher procurement payments to over 11 lakh dairy farmers with the need to keep essential food prices affordable for consumers.
The Karnataka Milk Federation (KMF) announced a reduction of Rs 2 per litre in the price of Nandini curd on November 2, 2026. This move follows immediate and intense public backlash against a significant price hike implemented on November 1, 2026, which had raised milk prices by Rs 8 per litre and curd prices by up to Rs 14 per litre. The federation, which operates as a state-owned cooperative, is not a listed entity, but its pricing decisions serve as a key benchmark for the regional dairy sector.
Partial Rollback After Public Protests
The decision to lower prices came after protests erupted across the state. Various groups, including the Bangalore Hotels Association, and political leaders voiced strong opposition to the steep increase. The initial price hike was intended to increase the amount paid to dairy farmers for their milk, with the federation stating that Rs 7 out of the Rs 8 hike per litre would go directly to the producers. The government's decision to partially roll back the curd price hike highlights the sensitivity of dairy products to public sentiment.
Balancing Farmer Income and Consumer Costs
Deputy Chief Minister D.K. Shivakumar, who addressed the issue, explained that the primary motivation behind the initial price hike was to support approximately 11 lakh dairy farming families across Karnataka. The state government faces a difficult task in balancing the financial health of the dairy sector with the inflationary pressure felt by households.
From a business perspective, the federation must remain competitive against neighboring states. A recurring risk for KMF is the potential for milk diversion, where farmers might prefer selling to private players or neighboring states if procurement prices are not lucrative enough. However, frequent price adjustments in response to public protests create a cycle of instability, making it difficult for the federation to maintain steady profit margins and plan for long-term supply chain management.
Future Monitorables
For those monitoring the dairy sector, the focus remains on how the federation manages its operational costs without repeatedly relying on consumer price hikes. The core challenge for the federation is ensuring that procurement prices remain high enough to support farmers while keeping retail prices acceptable to the public. Observers will track whether the government can stabilize these procurement costs and whether the current rollback impacts the federation's ability to sustain its support programs for dairy farmers in the long term.