Mangalore: Milk prices in the state are set to go up by Rs two from tomorrow, sources in Karnataka Milk Federation said Tuesday.

Increase in diesel prices leading to rise in transportation costs and funds needed to augment infrastructure have contributed to the decision. However the prices are still lower compared to neighbouring States, sources said.

Meanwhile, the state government sought to steer clear of the decision, saying it was left to the milk unions to take a call on the prices.

“We can’t interfere. We have told them (KMF) that they have to survive on their own and mobilise funds on their own”, Animal Husbandry Minister T B Jayachandra told reporters.