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The Karnataka government has announced a sharp price hike across key Nandini dairy products, impacting households across the state just ahead of the festive Diwali season. The price of a one-litre sachet of Nandini ghee has climbed from 715 rupees to 850 rupees, while 500 grams of salted butter now costs 380 rupees, up from 339 rupees. A kilogram of paneer has also seen an increase from 411 rupees to 485 rupees. This development follows a recent eight-rupee increase in milk prices, which the administration stated was initiated to directly support local dairy farmers facing distress during drought conditions, with seven rupees going to producers and one rupee allocated to the Milk Federation. However, the move has triggered concerns among middle-class consumers over rising household budgets and questions about competitive pricing against other major brands.

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00:00The DKS government has raised the price of the dairy products and remember for Karnataka there are some brands that
00:05are specific to the region.
00:07Karnataka where one litre sachet of Nandini ghee has increased from 715 rupees to 850 rupees.
00:17That's a big margin. About almost so to say about 100 rupees and a kg of Nandini paneer will now
00:25cost about 485 rupees from 408 rupees.
00:30So that is definitely a massive jump that is going to be a burden in the pocket for people in
00:35and across Karnataka.
00:37The price of butter also has been increased.
00:39I want to immediately bring in our editor Nagarjun Dwarkanath for the latest on that.
00:44Nagarjun, well not a very good morning when it comes to the residents but Nandini brand I believe is of
00:49course local to Karnataka.
00:51So what do you think is the reason that the government would increase it in a manner when they are
00:55clearly trying to promote local products?
01:02In fact, it's not a good morning like you said Pooja.
01:06The prices of milk recently went up by 8 rupees and now the butter prices and the ghee prices have
01:13gone up.
01:13I am coming to you from one of the stalls here in Majestic.
01:17It's the Nandini stall and you can see I have the Nandini butter with me here which is used across
01:23the state every day by millions of Karnataka.
01:26And I also have the Nandini pure ghee.
01:29Both the prices have gone up today and in fact I am going to hand it back to the retailer.
01:35Thank you sir.
01:36In fact, let me read across the prices Pooja that has come across now.
01:41The price of Nandini sachet ghee 1 litre from $7.72 after the GST billing price has now gone up
01:48to $8.50.
01:49So, around $70 of hike and butter, in fact salted butter, 500 grams was at $339 and now it's gone
01:58up to $380.
01:59Almost up to $40 of increase.
02:02So, it's in fact a somber Diwali because a lot of people use ghee butter to prepare sweets at home.
02:08And Nandini is used by millions of Karnataka every day and this is the backbone of the milk consumption in
02:15Karnataka.
02:16Because the milk prices have gone up, subsequently the by-products paneer, ghee, butter have also gone up as well.
02:23This is in one such Nandini shop that I am here in the central Bengaluru.
02:28People are complaining that it's going to be a burden on their pockets.
02:32Monthly budgets needs to be much more.
02:34But, while the farmers have welcomed this because the government has promised the hike will directly benefit the farmers of
02:40Karnataka.
02:40But, you know, when I look at the price range that is happening, Nagarjun, from a $715 to an $850
02:48is definitely a big jump for any consumer.
02:51I'm also comparing it, let's say, with other brands.
02:53For example, I can see Amul Pure Ghee 1 litre is about between 600 to 700 rupees.
03:00And when Nandini Ghee, a local brand that they want promoted, is about 850 rupees, it's very likely that a
03:07consumer will go to these other brands.
03:09How do you think that the government will ensure that they keep the vocal for local and yet while they
03:15want to benefit the farmers, not harm the customers?
03:21In fact, the government is of a strong firm belief that their prices are very competitive, especially the milk prices.
03:27They are much cheaper than when you compare to Amul or any private organization milk product that they sell in
03:34the northern part of India or other part of India.
03:36Nandini is priced somewhere around 54 rupees a litre right now, while the others are above 65, 67 is what
03:42the government has said.
03:43And subsequently, the by-products of the milk, ghee, paneer and butter will naturally increase because the basic commodity milk
03:51has gone up because of the government.
03:547 rupees is going to the farmers of the 8 rupees and 1 rupee goes to the milk federation for
03:58their own development.
03:59And this because in the drought also, the farmers don't have anything else, no crop, no yield.
04:04The only banking is the cows that give milk in the rural sectors and this encourages people and the farmers
04:12to in fact produce more milk and earn that gap of money which they are not able to earn through
04:17the crop yield.
04:18And in drought situation, this becomes a big backbone for the farmers is what the government says.
04:24But however, the middle class in Karnatka is hit terribly because people in every house, if it's a house of
04:314 or 3, at least a litre of milk is consumed and 1 litre of ghee is consumed in a
04:36month.
04:36And that's the reason why the burden is in the pockets right now on the middle class of Karnatka.
04:41Interesting. What you are telling us is that the farmers are definitely going to be happy about it because they
04:45get better returns on this.
04:46But it is perhaps especially the middle class that's going to be impacted with it.
04:50What else are we looking at? Naga, can you give me more details about other products?
04:55You mentioned ghee, milk, paneer also has been mentioned.
04:58Can you take us through some of the details of the price increase and the change that have happened?
05:02So I believe especially the dairy products of ghee, paneer and butter that have sharply increased about 100 rupees.
05:08Sure.
05:09Go ahead.
05:12Paneer, in fact, 1 kg of paneer was 411 rupees and now it's 485.
05:1873 rupees increase and Thrupti was at 600 rupees and now it's 659 rupees.
05:26So another 59 rupees increase.
05:28And if you look at Nandini also produce a small sachet of ghee, not just 1 litre.
05:33It has 500 ml, 200 ml, as small as 10 ml.
05:3510 ml earlier used to be at 82 rupees and now it's 8 rupees increase for the 10 ml.
05:43So not just 1 litre, they've also broken down the prices for 500, 210 ml also.
05:49And the ghee tin, 15 kilo tin where hotels uses, usually hotels, restaurants and people having weddings and functions at
05:56their house,
05:57buy ghee in bulk, 15 kilos, especially in Diwali season right now.
06:01Now it's, it was around 13,000, 1 lakh 31,077 rupees and now it's 1 lakh 41,000.
06:09In fact, that's the, I'm sorry, it's 13,177 and it's gone up to 14,100.
06:16An increase by 922 rupees right now per 15 kilos.
06:20So that's a steep hike as well.
06:22And this is not the first time.
06:23Remember, starting from 2023, the government has been increasing milk prices by 2 rupees, 3 rupees, 2 rupees, 3 rupees.
06:30And now, just 10 days back, it saw a steep hike of 8 rupees.
06:35It's the first time that the market has seen such a large hike.
06:36So Nagarjun, stay on with me.
06:37What we can see here is that the farmer vote base is clearly ecstatic, happy.
06:42They're getting better returns.
06:43The middle class vote base will currently be contemplating what to do.
06:47Nagarjun, stay on with me because it's not just about the dairy products.
06:50The Karnataka government's flagship, Griha Lakshmi scheme is also facing fresh questions.
06:54I also have details that are coming in about more reactions.
07:01Remember, because this is something that clearly is going to impact.
07:07I'm joined by G.S. Prashant.
07:09He's from the Karnataka BJP unit.
07:12Mr. Prashant, you tell me.
07:13The government says the farmers are giving us all of these products.
07:17They also deserve better returns.
07:19Do you think this is a fair decision by the Karnataka government?
07:40Mr. Prashant, I'll just come back to you.
07:43There seems to be a slight communication issue and we'll get that clear and I'll return to you.
07:47So what he's saying that farmers haven't really got the returns that the government is promising.

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