Bengaluru’s ₹8 per litre Nandini milk price hike may push up the cost of tea, coffee, snacks and other food items at hotels. Restaurant owners, bakeries and sweet shops are assessing the impact before revising their prices.
Bengaluru residents may soon have to pay more for their morning coffee, tea, breakfast and bakery treats following the Karnataka government’s decision to increase Nandini milk prices by ₹8 per litre from November 1. The hike has drawn strong opposition from the Bengaluru Hotel Owners’ Association, which has warned that hotels may have little choice but to revise menu prices to manage rising operating costs. Several restaurants, bakeries and sweet shops are also assessing the impact before deciding on possible price increases.
Hotel Owners Oppose ₹8 Milk Price Hike
The Bengaluru Hotel Owners’ Association has expressed strong dissatisfaction with the government’s decision, stating that the steep increase would place an additional financial burden on hotels and customers.
Association Honorary President PC Rao said hotel owners had earlier urged the government not to increase milk prices. However, the decision had left businesses with little choice but to raise the prices of tea, coffee and snacks by around ₹3 to ₹5 to remain financially viable.
Rao criticised the government for what he described as an unscientific price revision. He also suggested that if the government intended to support dairy farmers, it should provide subsidies directly rather than pass the burden on to consumers.
In a press release, the association said a smaller increase of ₹2 to ₹3 per litre would not have necessitated changes to hotel menu prices. However, it warned that the proposed ₹8 hike could make price revisions unavoidable across food and beverage items, including coffee, tea and milk-based products.
The association also highlighted the impact on the general public, particularly senior citizens, pregnant women and children who consume these items as part of their daily diet. It urged the government to control administrative expenses in the dairy sector and provide incentives to farmers to limit the burden on consumers.
CM Defends Nandini Milk Price Revision
Chief Minister DK Shivakumar defended the ₹8 per litre increase, stating that dairy farmers had been seeking a price revision for more than a year. He said the government had considered the rising costs of fuel, transportation and other expenses before taking the decision.
According to Shivakumar, milk producers had initially sought an increase of ₹12 to ₹15 per litre. After discussions, the government approved a hike of ₹8. He also maintained that milk prices in Karnataka would remain lower than those in neighbouring states even after the revision.
The Chief Minister said lower prices in Karnataka had encouraged milk to flow into neighbouring states such as Andhra Pradesh and Maharashtra. The revised rates, he said, would help address this outward movement and support farmers who had been facing financial difficulties.
He also pointed to the demand for Nandini products outside Karnataka, citing the purchase of ghee by Tirupati and the use of Nandini products in the preparation of items such as Mysore Pak.
Bengaluru Restaurants Consider Menu Price Revisions
The impact of the milk price hike is prompting restaurants to review their menu rates. According to a report by Deccan Herald, Halli Mane in Malleswaram is likely to revise its prices next week.
Proprietor Ravindra Sanjeevarao told Deccan Herald, “The milk price hike is the tipping point. Amid tensions in West Asia, the prices of most produce have increased. Businesses cannot absorb such increases.”
MTR Restaurants is also considering a price revision, although the extent of the increase has not yet been decided. Managing Partner Hemamalini Maiya told the publication that the restaurant would hold a meeting during the week to discuss the matter.
“We will hold a meeting this week to decide on the increase. This will be part of our annual price assessment,” she said.
Bakeries and Sweet Shops Assess Impact
Bakeries and sweet shops in Bengaluru are also evaluating the possible impact of higher milk prices and the resulting increase in the cost of dairy products such as ghee.
A city-based sweet business owner told Deccan Herald that the business would assess the cascading effect of the price hike before making a decision.
“We will wait to see the cascading effect before deciding on the increase. Ideally, we would look at a price hike after the Deepavali festivities,” the owner said.
With restaurants and food businesses reviewing their costs, customers in Bengaluru could see higher prices for everyday items such as tea, coffee, snacks, sweets and bakery products in the coming days.