The Big Dairy Dilemma: Kerala Farmers Are Losing

Production costs have surpassed the prices they receive for milk, generating a significant financial strain. This ongoing economic threat is forcing many farmers to contemplate exiting the dairy industry altogether if the procurement price of milk isn't raised.

The conflict revolves around the reluctance of Milma, the state's milk cooperative, to increase milk procurement prices. The farmers argue that the cost of producing milk is around ₹52 per liter, while they are being paid only ₹42 to ₹48 per liter. This gap means that farmers are operating at a loss, jeopardizing their livelihoods and sustainability of their businesses.

Despite a decrease in GST from 12% to 5% on certain dairy items, farmers feel that this change benefits only larger institutions like Milma and consumers, with no direct relief to the producers. The reduced number of dairy cows in the state—from 1.3 million five years ago to 900,000 today—highlights the urgency of the situation. This decline is particularly concerning as it leads the state to depend more heavily on milk imports from other regions, threatening local self-reliance and national food security.

The farmers' predicament is emblematic of broader challenges within agribusiness, emphasizing the necessity for fair compensation to maintain a viable dairy industry. Without an adjustment in pricing policies, the future of Kerala's dairy sector remains uncertain, posing risks not just to the local economy but to the national food supply chain at large.