Bengaluru: Congress govt’s decision to raise milk prices by Rs 8 a litre and curd by Rs 14 a kg has triggered an uncomfortable debate within the governing party: has it undermined the economic protection its five guarantee schemes were meant to provide?The hit will be felt hardest by Bengaluru’s middle-class, already stretched by high rent, rising food prices and costlier LPG. Households are also grappling with job losses linked to the geopolitical crisis and the AI boom. Milk and curd are daily purchases, and the steep hike adds to an already strained monthly budget.The timing is sensitive. Congress is preparing for taluk and zilla panchayat elections with chief minister DK Shivakumar asking party functionaries last week to begin preparations. The hike could complicate efforts to carry the welfare plank into the next electoral cycle, especially in urban and semi-urban areas.The guarantees were conceived ahead of the 2023 assembly polls as a buffer against inflation and fuel price rise, which Congress blamed on the BJP-led Centre. Political analyst Vishwas Shetty said they helped the party assure people of relief from rising living costs.“Middle-class people were especially happy with them, but the govt seems to have forgotten the purpose behind the guarantees,” Shetty said. “If the hike had been between Rs 3 and Rs 4, as in previous instances, I don’t think there would have been much fuss about it. A family may save on free bus travel and electricity yet pay more for milk and curd.”The govt’s case is that small and marginal dairy farmers deserve better returns amid rising input costs. Shivakumar said 67% of Karnataka Milk Federation (KMF) members belong to these categories. The procurement price goes up from Rs 35 to Rs 42 a litre, and with the existing Rs 5 govt incentive, farmers will get Rs 47. The govt estimates an additional Rs 1,850 crore to Rs 2,100 crore a year for them.But the benefits and costs are unevenly spread. Of around 26.8 lakh dairy farmer members in Karnataka, only 8.9 lakh supply milk to cooperative societies, while the hike touches virtually every household.The curd increase has drawn particular attention. The Bangalore Hotels Association has questioned why curd rose by Rs 14 a kg when milk went up by Rs 8 a litre. Ghee, butter and buttermilk prices will also rise depending on fat content, which could push up bills at hotels and eateries.BAMUL president DK Suresh, the CM’s brother, had been pressing for better returns for farmers, citing costlier feed, fodder, veterinary care and transport. He attended meetings with the CM, KMF officials and milk union functionaries before the decision. Unions had sought Rs 12 a litre; Shivakumar deferred a decision in Sept and sought price and production cost details from neighbouring states.The question is whether a gradual revision, or other ways of supporting farmers, could have spared consumers the full burden at once.Political analyst MN Patil said the impact would extend beyond milk and curd, triggering a cascading effect on household expenditure, much like fuel price hikes. “While dairy farmers may welcome the move, Congress will have to explain to middle-class consumers why a govt that promised relief from inflation has made an essential buy costlier, especially with local body elections approaching,” Patil said.
