Bengaluru residents may soon have to pay more for their daily cup of tea or coffee, breakfast and favourite sweets as hotels and eateries prepare to revise menu prices following Karnataka's Rs 8-per-litre hike in Nandini milk prices.
The revised rates will come into effect on November 1. Hotel owners have indicated that the increase could be implemented in phases, with businesses assessing the additional burden on their operating costs before revising prices.
The impact is expected to extend beyond tea and coffee to other milk-based products, including curd, butter, ghee and sweets prepared using khova.
Tea, Coffee Prices Could Rise From November 1
Tea and coffee currently cost between Rs 20 and Rs 48 at hotels across Bengaluru. These rates could increase following the milk price revision, with hotel owners considering phased hikes rather than a uniform increase across all menu items.
Bengaluru Hotels Association President Subramanya Holla has expressed concern over the steep increase, saying that hotel operators are already dealing with rising prices of essential commodities, including rice, pulses and cooking gas.
"We are very surprised. We thought the price might be reduced by around Rs 4, or there could be an increase. A hike was inevitable because petrol prices have gone up, affecting some aspects of milk processing. However, Rs 8 is a very steep increase. For the first time in Karnataka, we are seeing such a hike. Earlier, increases were usually Rs 1, Rs 2 or Rs 4. Even a Rs 4 hike would have surprised us, but Rs 8 is particularly steep for the common man,” IANS quoted Holla.
“Prices may increase anywhere between 5 to 8 per cent,” he added.
The association has also urged the state government to reconsider the increase and control administrative expenses in the dairy sector to limit the burden on consumers.
Which Food Items Could Become Costlier?
Apart from beverages, hotels, bakeries and sweet shops could also face higher production costs due to the increase in milk and dairy product prices.
Items that could see price revisions include:
- Tea and coffee served at hotels and darshinis.
- Curd and other milk-based preparations.
- Sweets made using khova, particularly North Indian delicacies.
- Food items prepared using butter, ghee and other dairy products.
- Snacks and breakfast items that require substantial quantities of milk.
Hotel owners have indicated that the increase in milk prices, along with the rising cost of other essential ingredients, could make it difficult to maintain existing menu rates.
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Nandini Milk Price Rises From Rs 46 To Rs 54 Per Litre
Karnataka Cabinet on October 29 approved an Rs 8 per litre hike in Nandini milk price. The price of the typical toned milk will go up from Rs 46 to Rs 54 a litre, effective November 1.
Out of the Rs 8 subsidy, Rs 7 will be directly transferred to the farmers, while Re 1 will be given to the milk unions to pay for their expenses like transportation, packaging, etc.
The state government had given the rationale that rising cattle feed, fodder, labour and transportation costs, coupled with the state's falling milk procurement as a result of drought.
Chief Minister D K Shivakumar has justified the hike, saying it is meant to safeguard dairy farmers' income and provide a steady milk supply.
Will All Bengaluru Restaurants Increase Their Prices?
The milk price revision does not mean that every restaurant will increase its menu rates immediately. Individual hotel owners will decide on revisions depending on their milk consumption, operating expenses and profit margins.
However, with Bengaluru's hotel industry already facing higher input costs, consumers could see costlier beverages, snacks and dairy-based food items in the coming days.