Tea, Coffee Prices Unchanged in Karnataka

Bengaluru:The hike in milk prices (Nandini) by Rs 2 per half a litre and also on a litre came into effect in Karnataka on Wednesday and the Hotels Association, Bengaluru decided not to increase tea/coffee prices at the moment terming that the hike in milk prices will not have burden on their business.

It was speculated that with the rise in milk prices, the hotels would increase prices of tea/coffee and the Hotels Association stated that it will decide on whether to increase in tea/coffee prices or not.

The hike in milk prices came after the recent rise in sales tax on fuel by the Karnataka government. The State Government hiked sales tax on fuel by Rs 3 a litre. It may be recalled here that Karnataka Milk Federation, a subsidiary of the State Government, announced a hike in milk prices by Rs 2 besides offering customers extra 50 ml in milk sachets.

The hike in milk prices drew criticism from Bharatiya Janata Party and Janata Dal Secular leaders. BJP MLA and Leader of Opposition R. Ashoka demanded the State Government to withdraw the hike in milk prices in the interests of the common man.

Hotels Association president P.C. Rao stated that the latest increase in milk prices will not have any impact on hotel business and therefore the rates of tea/coffee will remain untouched. Rao added hotels consume most of the milk produced from KMF and termed KMF a prestigious institution serving farmers through purchase of milk from them,

Over the rise in milk prices, Chief Minister Siddaramaiah stated KMF hiked milk prices to supply surplus milk production to consumers and the rise in milk prices has been effected so as not to burden the common man.

In the previous year, the milk production in the State stood at average 72 lakh litres a day and after the Congress government came to power in Karnataka hiked milk prices in August previous year by Rs 3. The State Government directly transferred additional amount to farmers which resulted in incentive to animal husbandry activities. Now, animal husbandry activities have proved to be ‘lucrative.’

Continuing, the Chief Minister said, transfer of additional amount to farmers producing milk and fodder availability owing to adequate rainfall this season has helped the State to touch milk production to about 1 crore litres a day.