Karnataka's Diwali Price Shock: Guarantee Schemes Under Pressure As Nandini Milk, Ghee Gets Costlier; Bus Fares Up 23%

A price shock awaits Karnataka ahead of Diwali. The state government has announced a hike in Nandini dairy product prices, with milk, curd, ghee, butter and paneer all set to become costlier. Government bus fares have also been increased by 23%, adding to the burden on households. While the Congress government says the dairy price revision is aimed at benefiting farmers, the BJP has accused the D K Shivakumar government of burdening people amid a fund crunch. With the Gruhalakshmi scheme's pending instalments also under scrutiny, questions are mounting over the financial sustainability of Karnataka's guarantee schemes. Is the state's fiscal stress driving these price hikes?