Bengaluru : The State government may soon allow the Karnataka Milk Federation (KMF) to increase the price of Nandini milk, Animal Husbandry Minister T B Jayachandra has said.

He told reporters on Thursday that the KMF had sought permission to increase the price of milk by Rs 4 (commonly used toned milk which comes in white-and-blue sachet), but the government has yet to take a decision.

Nandini milk price is the lowest in the country. The KMF is incurring a loss because of the increasing manufacturing cost, and hence the proposal, he said.

Currently, a litre of toned milk costs Rs 29 per litre. The KMF has sought to increase the price of all its varieties, including toned milk.

The minister refused to reveal the quantum of hike. It is said the government is unlikely to take any decision in this regard till the BBMP elections, likely to be held in August, are over.

Jayachandra said milk production had increased due to good pre-monsoon rainfall. KMF has procured about 69 lakh litres in April. Daily milk sale is about 35 lakh litres. So, the federation is left with about 30 lakh litres of milk every day, and it has been trying to find ways to process the milk and convert it into other milk products, he said.

Due to increase in production, KMF has proposed to provide Nandini milk to government school students five days a week, instead of three.

The government, which provides milk to students for free, will have to spend an additional Rs 400 crore if the proposal is implemented. The last upward revision of milk price was done in October 2013.