Bengaluru businesses brace for impact after hike in Nandini milk prices

The Karnataka Milk Federation’s (KMF) decision to hike the prices of Nandini milk by Rs 3 per litre has left some businesses bracing for impact, while others are confident that the effect is only temporary.

P C Rao, president of the Bruhat Bangalore Hotels Association, noted that he had instructed all restaurants to keep customers in mind while adjusting the prices of their products accordingly.

"We can reasonably expect at least a 10 per cent increase in the prices of all dishes in hotels, especially those that use milk like tea, coffee, and sweets,” he said.

Read | Karnataka hikes price of Nandini milk by Rs 3 per litre

Raghu, the owner of Sri Venkateshwara Sweetmeat Stall, explained that such a hike, paired with inflation, would indirectly affect the labour industry.

"Such a price hike will lead to a growing pressure to meet production targets with less raw material, which could compromise quality and encourage adulteration. This could impact sales and further bring down profits, making it difficult for businesses to sustain themselves without hiking their prices,” he said.

He anticipates the prices of sweets to rise by anywhere between 10 per cent and 12 per cent of the current prices.

Although prices of sweets will inevitably increase, Arvind Dadu, MD, Anand Sweets, believes that the impact of this hike on sweet consumption is an expected and temporary phenomenon.

"People will adjust to the increase in prices because sweets are for special occasions. I don’t think the consumption of sweets will dip as such,” he said.

Employees at the Families Supermarket in Kanakanagar noted that the demand for Nandini was such that they don't expect to see a dip in sales. "People will get used to the hike and pay because milk is a necessity. Customers prefer the Nandini brand so I don’t think we will see any fall in demand,” said Shinoj, the owner of Anand Stores, Indiranagar.