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.