Tea, coffee prices to rise by ₹5 after milk price hike

Hotels and condiment stores have announced a ₹5 increase in the prices of tea and coffee after milk prices are set to rise by ₹8 per litre from November 1.

The increase is also expected to affect milk-based desserts, although the prices of specific desserts will be decided in the coming days.

Hotels prepare to revise prices

Hotel associations said the sharp increase in milk prices would raise operating costs for hotels and restaurants.

P.C. Rao, president of Bangalore Hotels’ Association, said the latest increase was the first ₹8-per-litre hike in the history of milk prices.

“For the first time in history, the government has increased the price of milk by ₹8 per litre,” Rao said.

He said hotels and restaurants would not have increased the prices of tea and coffee if the increase had been limited to ₹2 or ₹3 per litre.

“Because of the drastic increase in the price of milk, we will discuss among all the hotels and increase the prices of tea and coffee accordingly,” Rao said.

G.K. Shetty, president of Karnataka State Hotels’ Association, said prices would be revised for tea, coffee and other items because the cost of several commodities had increased.

“With increasing prices of all the commodities including milk, rice and others, we will hike prices of tea, coffee and other items by 5%,” Shetty said.

The association also indicated that desserts made with milk would become more expensive.

Shetty said the prices of carrot halwa, payasam, badam milk and other desserts would be increased, with the decision expected in a few days.

The latest increase follows an earlier rise in milk prices.

The government had increased the price of milk by ₹4 per litre in April 1, 2025, according to the source.

Before that, milk prices had been increased by ₹2 per litre in June 2024, along with an additional 50 ml in 500 ml milk packets by the State government.

Condiment stores to charge ₹17 to ₹20

Condiment stores across the State that sell tea and coffee have also decided to increase their prices.

Ravi Shetty Byndoor, president of Karnataka Rajya Karmika Parishath (KRKP), said the organisation had worked for the rights of Karnataka bakeries and condiment stores.

“The KRKP has always fought for the rights of Karnataka bakeries and condiment stores,” he said.

As part of that decision, condiment shop owners will increase the prices of tea and coffee by ₹5.

Some shops currently sell tea and coffee for ₹12, while others charge ₹15.

After the increase, the prices will range from ₹17 to ₹20 per cup.

Pradeep Krishna, a resident of Jayanagar, said consumers understood the need to support farmers but objected to the size of the latest increase.

“We understand that farmers must be supported but an increase by ₹8 all of a sudden is definitely not fair to common man. They should have increased it by ₹3 to ₹4 per litre,” Krishna said.

He also said that household expenses had been rising while salaries had not increased to meet those costs.

“All prices, including rent of house, are increasing except our salaries to meet the increasing expenses,” Krishna said.

Bakeries hold prices for now

Bakeries, sweets shops and cafes have decided not to increase the prices of sweets or bakery items for now.

Madhu Iyengar, secretary of Karnataka Bakeries, Sweets and Cafe Association (KBSCA), said the decision was based on the increase in the prices of commodities used by the common man and the competition among shops.

“Considering that all the prices of commodities used by common man have increased, we will not increase the prices of sweets or any bakery items for now,” Iyengar said.

He said that if one bakery or sweet shop increased its prices, it could lose customers.

“If one bakery and sweet shop owner will increase the price, they are likely to loose customers,” Iyengar said.

He added that surviving in the business was the priority in the current situation, so bakeries and sweet shops would continue with their existing prices.

Iyengar said profit margins for bakeries and sweet shops had already fallen by 10% to 12% as the prices of other commodities, especially sugar, increased.

He added that the increase in milk prices would reduce those margins further.

Source: The Hindu