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KMF Raises Nandini Ghee Price to ₹700 a Litre, Reversing GST-Era Cut

KMF says the revision is needed to keep a ₹4-per-litre premium to farmers.

Overview

  • The Karnataka Milk Federation increased Nandini ghee by ₹90 to ₹700 per litre with effect from Wednesday.
  • The federation said the hike preserves farmer payments and helps cover losses from converting surplus milk into skimmed milk powder.
  • KMF procures about 1 crore litres of milk daily, with roughly 15 lakh litres turned into SMP that sells at about ₹240–₹250 per kg versus a break-even near ₹260.
  • Officials cited rising international dairy input costs and said Nandini remains cheaper than many private brands, adding that Amul could adjust Karnataka prices after hikes elsewhere.
  • The move reverses a September GST-driven reduction that had lowered ghee from around ₹650 to ₹610, and a Bengaluru union chief said there is no proposal to raise milk prices.