Milma Requests Kerala Government Approval for Milk Price Increase

Kerala's premier dairy cooperative, Milma, has formally requested the state's government to approve a milk price hike of ₹4 per litre. This proposal is driven by significant increases in procurement costs, cattle feed prices, fuel expenses, and electricity tariffs, which have placed considerable financial strain on cooperative dairies.

According to officials from Milma, the cooperative has been absorbing these rising costs to shield consumers from price increases. However, the surging prices of fodder and increased payments to farmers have reduced operational margins, necessitating a revision in milk prices. Additionally, logistics and chilling costs have escalated due to fuel inflation, impacting the cooperative's cost structure.

Milma emphasizes that this price adjustment is critical to ensure stable and fair prices for farmers. In Kerala's cooperative model, procurement prices are closely tied to retail prices, making such revisions essential for maintaining the financial health of the cooperative. Industry experts warn that delaying price adjustments can lead to payment delays or reduced procurement volumes, adversely affecting rural livelihoods.

The proposal awaits government approval, which must balance consumer affordability with the welfare of farmers and the sustainability of the dairy sector. Milk is a politically sensitive product, especially amidst broader concerns about food inflation. Approval of this hike would align Kerala with other states that have implemented similar measures.

Experts argue that in addition to price adjustments, structural changes such as feed subsidies, productivity improvements, and enhanced energy efficiency are necessary to strengthen cooperative dairies across the country.