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Congress govt in Karnataka raises milk prices by Rs 3 per litre after DK Shivakumar had said they have no funds for development this year

Earlier this week, DK Shivkumar admitted that the Karnataka government was suffering from a paucity of funds to bankroll development projects this year as they had budgeted Rs 40,000 crores for implementing the five election guarantees.

On Thursday (July 27), the Karnataka government decided to hike milk prices in the state by Rs 3 per litre effective August 1, following demands from milk producers’ unions.

A week after granting initial approval in a meeting with representatives from the Karnataka Milk Federation (KMF), the Cabinet provided post-facto approval for the hike. The decision came after KMF explained that the lower procurement resulted from private players offering higher prices to farmers.

Later, Deputy Chief Minister DK Shivakumar defended the move saying they wanted to “help farmers” by hiking the milk prices by Rs 3 per litre.

“We have to give money to the farmers. Throughout the country, the milk price is Rs 50-56, and in our state, the price is very low. So, we want to help the farmers by increasing Rs 3,” DK Shivakumar said.

Pertinently, the move comes months after Congress and the opposition parties stoked the Amul vs Nandini row in the run-up to the state assembly elections in Karnataka, lashing out at the BJP government for allowing Amul to sell fresh milk and curd in Bengaluru, asserting that it would hurt the business of the local brand Nandini, owned by Karnataka Milk Federation.

However, the milk price hike has not been taken kindly by the people of Karnataka, many of whom have taken to social media to express their displeasure over the rate increase in the essential commodity. Criticising the government, they claim charging extra for milk is how they are going to fund their freebie promises made during the election campaign.

It is worth noting that Congress has been outraging over the ‘rising inflation’ in the country, even though it was at a 25-month low in May 2023. With the hike in milk prices, the cost of other essential commodities in Karnataka is bound to go up in the days to come.

DK Shivakumar says Karnataka govt has ‘no money for development’ this year as priority is to fulfil election promises

Earlier this week, DK Shivakumar admitted that the Karnataka government was suffering from a paucity of funds to bankroll development projects this year as they had budgeted Rs 40,000 crores for implementing the five election guarantees.

Shivakumar made these comments in response to inquiries regarding the discontent expressed by certain Congress MLAs who have requested funds for the development of their respective constituencies. The Congress legislature party (CLP) has scheduled a meeting this evening to address the concerns of these MLAs who are disappointed that their constituencies have not received adequate development funds.

Following DK Shivakumar’s comments on the lack of funds, Parliamentary Affairs Minister Pralhad Joshi said the Congress party was driven by a thirst for power and lacked the necessary funds to fulfil its promises and support development initiatives. He pointed out that the Deputy Chief Minister’s admission highlights the government’s lack of vision and responsibility.

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