Karnataka milk union raises prices for ghee, butter and paneer

Consumers across Karnataka face higher costs for essential dairy items as the Bangalore Urban, Rural and Ramanagara District Co-Operative Milk Producers Societies Union Limited raises prices for ghee, butter and paneer.

Price Hikes

The revised rates were released on November 4 and came into effect across the State on November 5, 2026, following earlier price hikes for milk and curd by upwards of ₹8 per litre. Prices for these products were last increased in July 2026 by 10%. A one-litre ghee sachet now costs ₹850, up from ₹715, while a ghee pet jar is priced at ₹870 instead of ₹735. A five-litre pack of ghee has risen from ₹3,575 to ₹4,250, and a one-litre ghee tin costs ₹870 after an increase of ₹120. A 15-litre ghee tin is now priced at ₹14,000, up from ₹11,625. For butter, a 100-gram blister pack has jumped from ₹600 to ₹900, a 500-gram salted butter pack is up to ₹380 from ₹310, and unsalted butter has increased from ₹330 to ₹390 per 500 grams. Paneer prices have also gone up, with a 200-gram pack rising from ₹96 to ₹115 and a one-kg pack moving from ₹480 to ₹485.

Industry Reaction

P.C. Rao, honorary president of the Bangalore Hotels Association, criticized the decision. He stated that the move creates a huge financial burden for the hotel industry, adding that businesses face a combined cost pressure from the hikes in milk, curd, paneer, ghee, and butter prices.

Context

State milk federations in India regularly adjust retail prices for dairy products to manage rising input costs for dairy farmers and processing unions. These upward price revisions directly impact both household budgets and commercial food businesses that rely heavily on bulk dairy supplies.