The Karnataka cabinet has decided to hike price of Nandini milk by Rs three per litre from August 1.

Nandini is the brand name of products of Karnataka Milk Federation (KMF).

The decision was taken on Thursday in the cabinet meeting in view of the demands of the milk producers.

Defending the move, Chief Minister Siddaramaiah said on Friday that Karnataka is selling milk at the lowest price whereas in the other states it is much higher.

"The milk (toned) that costs Rs 39 will be sold at Rs 42 per litre. Elsewhere it is sold between Rs 54 and Rs 56 per litre. In Tamil Nadu the price is Rs 44 per litre," the Chief Minister said.

Commenting on the decision, Deputy Chief Minister D K Shivakumar said, "We have to give money to the farmers (milk producers). Today in the entire country it's (toned milk) Rs 56 per litre. In our state people are getting at a very less price." He also said the government had decided to hike milk price by three rupees to help farmers.

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