Your morning cuppa may leave a hole in pocket as govt hikes milk prices by Rs 2

Come summer, your morning cuppa or a refreshing chai will leave a hole in your pocket as the state government has approved the proposal to hike milk prices by Rs 2 per litre. The new prices will come into effect from February 1. Seeking revision of prices, the Karnataka Milk Federation (KMF) had submitted a proposal last week to the state government. Alongside the revision of milk prices, the state government has also hiked the prices of curd by Rs 2 per liter.

The sudden hike in the prices of milk, curd is likely to have a cascading effect on the milk related beverages such as coffee, tea, and milkshakes with hoteliers and eateries mulling to increase the prices of coffee and tea following the hike in prices.

Sources in the state government revealed to DH that out of Rs 2, farmers will be getting a lion’s share as their accounts will be credited with Rs 1. Another 40 paise will be given to the farmers towards the insurances of their livestock. Another 40 paise will go to the milk salesmen in the form of commission. The remaining 20 paise will be distributed among the workforce at the milk cooperative unions as an additional incentive.