Nandini’s journey from Kudige: How a small Kodagu town laid the foundation for Karnataka’s dairy revolution

Kushalnagar: The recent increase in Nandini milk prices in Karnataka has once again brought the spotlight on the Karnataka Milk Federation (KMF) and its efforts to improve the earnings of dairy farmers. The State government has announced an increase of ₹8 per litre, effective November 1, 2026, of which ₹7 will go directly to milk producers and Re. 1 to milk unions. With the revision, the price of a litre of toned milk has increased from ₹46 to ₹54. The procurement price paid to farmers has also been raised from ₹35 to ₹42 per litre, while the existing government incentive of ₹5 continues, taking their total realisation to ₹47 per litre.

While Nandini has evolved into one of India's most recognised dairy brands, with a presence extending beyond Karnataka, the story of its beginnings is closely connected to a relatively small town in Kodagu district. Kudige, a place that many consumers may not associate with the State's dairy industry, holds an important place in the history of Karnataka's cooperative milk movement.

In February 2025, The Hindu revisited Kudige in Kodagu district, the place where Karnataka's cooperative dairy movement took its first steps. In a ground report, Ballachanda Darshan Devaiah, a Kodagu-native journalist with The Hindu, traced the origins of the Karnataka Milk Federation (KMF) to this small town, taking readers back to the roots of what has grown into India's second-largest dairy cooperative. The report explored the history of the first dairy facility, its significance in Karnataka's milk revolution and how a modest initiative in Kodagu eventually evolved into the Nandini brand.

The Hindu report offered a glimpse into the early years of what would eventually become one of India's largest dairy cooperative networks. The town, which housed Karnataka's first dairy cooperative, continues to preserve the remnants of an important chapter in the State's agricultural and economic history.

An old dairy building in Kudige stands as a silent witness to the origins of this journey. Its deteriorating walls, rusted machinery, abandoned milk crates and damaged structures present a striking contrast to the modern dairy operations that have since transformed the industry.

The original facility, located in a neglected condition, is now accompanied by a fully functioning, modern dairy unit situated approximately 500 metres away.

Despite the building's deteriorating condition, an inauguration plaque inside it remains intact. The inscription records that the Milk Pasteurisation Scheme was inaugurated by Lieutenant-Colonel Daya Singh Bedi, the then Chief Commissioner of Coorg, on July 24, 1955.

Although the historic structure has considerable significance, it has not received the maintenance it deserves. The property is presently under the control of the Hassan Cooperative Milk Producers Union, which functions under KMF. Residents have expressed concern over the lack of upkeep of the heritage facility.

A.S. Premnath, a former Managing Director of KMF, said Kudige occupies a special position in the history of Karnataka's dairy sector, although its contribution is not widely known.

The first dairy cooperative in the State was established at Kudige in 1955. Nearly two decades later, in 1974, the Karnataka Dairy Development Corporation (KDDC) was formed as part of a World Bank-supported initiative to strengthen milk production and marketing through the cooperative system. The organisation was subsequently renamed the Karnataka Milk Federation in 1984.

The dairy development programme, initiated in 1975 with international financial assistance, initially covered Mysuru, Hassan, Tumakuru and Bengaluru districts.

Today, KMF has grown into a major cooperative institution, with 15 milk unions operating across Karnataka. It procures milk through primary dairy cooperative societies and connects lakhs of producers with consumers in both urban and rural markets. The federation has approximately 28 lakh dairy farmer members across the State.

Premnath's connection with Kudige is also personal. Having spent his childhood in the town, he grew up witnessing the development of the dairy industry. His father was employed at the facility, giving him an opportunity to observe its early operations closely.

He recalled how milk was boiled using firewood during the initial years and how ghee manufactured at the facility gained considerable popularity. 'Coorg Ghee' was then a recognised product, enjoying a reputation similar to that of Coorg Coffee and Coorg Honey.

Kodagu, predominantly associated with coffee plantations, oranges and cardamom cultivation, may not immediately come to mind when discussing Karnataka's dairy industry. Yet, its small town of Kudige played a pioneering role in establishing the cooperative framework that eventually transformed milk production and distribution across the State.

From a modest pasteurisation facility in 1955 to a widespread cooperative network and the Nandini brand, the journey represents a remarkable transformation. As the brand continues to expand its markets, introduce new products and compete with established players such as Amul, its origins in Kudige remain an important, though lesser-known, part of Karnataka's dairy story.