Karnataka Hotel Industry Raises Concerns Over Nandini Milk Price Hike
Hotel Industry Raises Concerns Over Financial Impact
Bengaluru: The Karnataka State Hotel Association (KSHA) has strongly raised concerns over the proposed ₹5 increase in Nandini milk prices, stating that it would have a severe negative impact on the hotel industry.
In a formal letter to the state government and the Karnataka Milk Federation (KMF), KSHA President G.K. Shetty expressed deep concern over the consequences of such a price hike. “If the milk price is increased, it will directly affect the hotel industry, which is already struggling due to rising costs,” he said.
The price of coffee powder has already skyrocketed. If milk prices go up, the cost of tea, coffee, and other hot beverages will inevitably increase, putting additional pressure on hotel owners. The hotel industry in Karnataka, which provides livelihoods to lakhs of families and contributes significantly to government revenue through taxes, could face major disruptions, Shetty added.
Public Health Risks Due to Unregulated Alternatives 
The association also warned of potential public health risks if the price hike forces consumers to seek cheaper alternatives. M.V. Raghavendra Rao, Honorary Secretary of KSHA, explained, “Hotels strictly adhere to food safety and hygiene regulations, ensuring high-quality tea, coffee, and other beverages for customers. However, if milk prices rise, people might shift to cheaper, unregulated roadside options that do not meet safety standards, posing a serious risk to public health.”
“Higher Milk Prices May Lead to Costlier Tea, Coffee, and Economic Impact”
KSHA has urged the government to reconsider the proposal in the interest of both the hotel industry and public health. “The government must prioritize the welfare of the people and the hotel sector by withdrawing the proposed milk price hike immediately,” Shetty demanded
Q&A:
🔹 Q: Why is the Karnataka State Hotel Association (KSHA) expressing concern over the milk price hike?
🔸 A: The KSHA argues that an increase in Nandini milk prices will lead to higher costs for hotels, restaurants, and consumers. This could force businesses to increase prices of tea, coffee, and dairy-based products, negatively affecting customers and public health.
🔹 Q: How will this impact the common public?
🔸 A: If hotels raise prices, consumers may turn to cheaper, unregulated street vendors selling low-quality tea and coffee, which can compromise food safety and hygiene.
🔹 Q: What is KSHA demanding from the government?
🔸 A: KSHA urges the Karnataka government and KMF to withdraw the proposed hike, keeping public interest and the hospitality sector’s sustainability in mind.
Summary of the Issue:
The Karnataka State Hotel Association (KSHA) has strongly raised concerns over the proposed ₹5 price hike for Nandini milk, warning of serious consequences for the hospitality industry. The association has written to the state government and Karnataka Milk Federation (KMF), highlighting the negative impact on hotels, small eateries, and consumers.
KSHA President GK Shetty expressed concerns that the increase would force hotel owners to raise prices for essential beverages like tea and coffee, affecting affordability for the general public. Hon. Secretary MV Raghavendra Rao pointed out that such a move would drive consumers towards unregulated vendors, posing health risks.
The association has urged the government to reconsider the hike and adopt a balanced approach to support both dairy farmers and businesses relying on milk as a key ingredient.
