Milma Increases Feed Subsidy to Support Kerala's Dairy Farmers
The Kerala Co-operative Milk Marketing Federation (KCMMF), known as Milma, has implemented a strategic decision to increase its cattle feed subsidy. From February 1 to March 31, 2023, Milma will offer a subsidy of ₹200 per bag on their Gomathi Gold cattle feed. This move doubles the previous state-level support and aligns with Milma's commitment to alleviate financial pressure on dairy farmers.
The decision was ratified by KCMMF’s governing body in response to ongoing inflation in feed ingredients and farm inputs, which have been impacting producer margins. With an additional ₹100 per bag subsidy already in place from Milma’s Thiruvananthapuram and Malabar Regional Unions, farmers are now set to gain a total subsidy of ₹300 per bag. This adjustment aims to stabilize production economics in the short term.
In terms of pricing, the revised subsidy framework effectively reduces the feed cost by ₹120 below the 2019 price benchmark, restoring affordability levels that have not been seen in years. Additionally, Milma has decreased the cost of silage and maize fodder by ₹2 below the 2019 average, extending relief across critical nutritional inputs.
Milma's intervention underscores the important role of dairy cooperatives in managing volatile input costs. Feed represents 60–70% of milk production costs, making it vital for farm profitability. By adjusting feed prices, Milma is aiding farmer cash flows and securing milk procurement stability, crucial for maintaining supply in organized dairy chains.
While the subsidy offers immediate relief, it highlights the vulnerability of smallholder dairy systems to fluctuations in feed prices. Long-term solutions likely require investments in fodder development and local feed resource optimization to reduce reliance on external markets.
In the near term, Milma’s increased subsidy is expected to provide significant financial relief to Kerala’s dairy farmers, reinforcing its role in balancing farmer welfare with supply chain sustainability.
