Karnataka Hotel Industry Raises Concerns Over Proposed Hike In Nandini Milk Prices
The Karnataka State Hotel Association raised concerns about potential public health risks if consumers and small vendors turn to cheaper, unregulated milk sources.
Published : March 13, 2025 at 1:57 PM IST
Bengaluru: The Karnataka State Hotel Association (KSHA) has urged the state government and the Karnataka Milk Federation (KMF) to reconsider the proposed Rs 5 increase in Nandini milk prices, warning that it could have a significant financial impact on the hotel industry.
The association highlighted concerns about rising operational costs and potential public health risks if consumers turn to unregulated alternatives.
In a formal letter to the government and KMF, KSHA President G.K. Shetty emphasised the challenges that the hotel industry is already facing due to increasing costs.
“If the price of milk rises, it will directly affect the hotel industry, which is already struggling with high expenses. The cost of tea, coffee, and other beverages will increase, placing additional pressure on businesses,” he said.
He also pointed out that coffee powder prices have already surged, and an increase in milk prices would further drive up beverage costs, making it difficult for hotels to maintain affordability for customers.
The hotel industry in Karnataka employs thousands of families and contributes significantly to government revenue through taxes. Shetty warned that a milk price hike could disrupt the sector and affect the livelihoods of many.
KSHA also raised concerns about potential public health risks if consumers and small vendors turn to cheaper, unregulated milk sources. M.V. Raghavendra Rao, Honorary Secretary of KSHA, explained, “Hotels follow strict food safety regulations to ensure high-quality tea, coffee, and beverages. If milk prices rise, people might opt for unregulated roadside alternatives that do not meet safety standards, posing a serious risk to public health.”
The association has called on the government to withdraw the proposed increase in milk prices, stating that it would be in the best interest of both the hotel industry and the general public.
“The government must prioritise the welfare of businesses and consumers by ensuring that essential commodities like milk remain affordable,” Shetty said.
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