Bengaluru
oi-Madhuri Adnal
Karnataka Chief Minister D.K. Shivakumar has asked the Karnataka Milk Federation (KMF) to reconsider the recent increase in curd prices and reduce the rates following objections from hotel owners and consumers.
The price of one litre of curd was increased from Rs 54 to Rs 68 from November 1, marking a hike of Rs 14. The prices of Shubham milk and special toned milk also increased from Rs 52 to Rs 64.
Karnataka Chief Minister D.K. Shivakumar has asked the Karnataka Milk Federation (KMF) to reconsider its recent Rs 14 price increase on curd, raising it to Rs 68, after objections from hotel owners and consumers regarding higher operating costs.
Shivakumar said he had instructed KMF representatives, who met him on Monday (November 2), to reduce the price of curd.
“I have instructed KMF office-bearers who came to meet me on Monday to reduce the price of curd,” he said.
Explaining the difference in prices across milk categories, the Chief Minister said milk with higher fat content would cost more. He added that officials would provide a detailed explanation of the revised rates.
Defending the price increase, Shivakumar said the revision would support around 11 lakh dairy farming families in Karnataka.
Hotel owners have raised concerns over the Rs 14 increase in curd prices, saying it would add to their operating costs.
P.C. Rao, honorary president of the Bangalore Hotels Association, said the industry understood the need to increase milk prices to support farmers but questioned the higher increase in curd prices.
“We understand the increase in the price of milk by Rs 8 per litre is to support farmers. However, the price rise of curd by Rs 14 per litre is beyond our understanding,” Rao said.
He said that based on the Chief Minister’s announcement, the price of one litre of curd should have been Rs 62 instead of Rs 68.
He also questioned whether the additional Rs 6 would go to dairy farmers or KMF.
Hotels use curd in several preparations, including rava idli, meals, buttermilk, raita, biryani, dahi vada and Mangaluru bajji. Rao said the price increase had added around 15% to hotel expenses.
He said members of the hotel association would meet Shivakumar and KMF officials to request a reduction in curd prices. They would also seek clarity on further price increases in dairy products such as ghee and paneer, which have recently become more expensive.
KMF officials have attributed the increase to higher milk procurement costs, fat content and production expenses.
A KMF official said the cost of bacterial culture used in curd production had increased over the past five months. The culture, which is imported from West Asian countries, is used in the production process.
The official also cited higher electricity bills due to the refrigeration requirements of dairy products and increased transportation costs following the rise in petrol and diesel prices.
KMF also has to provide margins to sellers and vendors operating Nandini milk booths while ensuring that farmers receive adequate returns.
The official said the curd prices were being reworked following the Chief Minister’s instructions and that the revised rates would be announced soon.
Meanwhile, some hotels in Bengaluru have increased the prices of coffee, tea and milk by Rs 2 to Rs 3 following the increase in dairy product prices.
