Bangalore: After much scrambling by dairy companies for a price hike in milk, before Year-end, there is a report in the air about a modest rate increase of Rs3(instead of Rs5) per liter of fresh milk in the new year, when petrol rates are still awaiting a hike at the Centre due to election fever.

The state government is stated to have given the clearance for a hike of Rs 3 only from Saturday, January 7 to appease dairy farmers.

With that moderate hike, the blue milk Sachets will Cost Rs24 a liter, while green pouches will rate at Rs27 a litre, making Karnataka milk rates as good as those in other states.

Orange Coloured satchets will sell at Rs30 a litre, but yellow pouches will touch only Rs20 a litre, from Saturday onwards.

The KMF milk rate is already higher by a rupee per litre in coastal areas, so the pinch will be painful now, with an extra Rs3 demanded.

KMF wanted a higher price, but the Government considered consumers interests as will, to fix a moderate hike, due on Saturday this week.